Stock forum

Post edited 8:20 pm – September 16, 2010 by Jae Jun

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MrBook said:

Jae; I am referring to (ABT) from 8/16/2010 and the "Graham Valuation" spreadsheet.

 

1. In the Shares Outstanding box at the top why is the 1540 number different than the two numbers I got from the "Statements" spreadsheet under the TTM column? Can I change this if I need to? Why are these figures different?

 

2. When I tried to change the MOS figure to 50% at the top nothing happened throughout the rest of the spreadsheet. Why?

 

3. At the top in the Growth box my spreadsheet said 9.7%. Then if you want to change this figure their is a drop down menu with a couple of other choices. Where did the 9.7% figure come from? Where did the other choices come from in the drop down menu?

 

4. At the top in the Projection box their is a drop down menu for Forecast and Linear regression. What is the forecast method? What is the formula for the forecast method? When I changed this to the Linear Regression method nothing happened. Why?

 

5. For the Corp Bond rate in the box at the top of the page I don't have to enter this in do I?

 

6. In cell A23 you give Normal Earnings. Are "Normalized" Earnings a forward projection of earnings or are they a backward computation related to the forecast method question that I asked in #4?

 

7. What does the graph represent down below?

 

8. I see that you altered the Graham formula for a no growth company PE ratio from 8.5 to 7.0. I read your explanation. What prompted you to come ups with this adjustment? Can you back this up empirically? I also see that you changed the multiplier from 2.0 to 1.5. Can you back this up empirically? Same question for the AAA bond to the A bond.

 

9. I have the 6th and most recent addition of Security Analysis. Do you happen to know where in that book where the Graham formula is given?

 

10. In the 5 Year EPS growth section. Why are 2004-2007, 2005-2008, 2006-2009, 2004-2006, 2005-2007, 2006-2008, 2007-2009 categories given when they are not even 5 year periods?

 

11. In the 10 year EPS growth section. Why are the categories listed none are 10 years in length?

 

OK. That's all for now. Thanks.

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1. TTM can be different if numbers because it is based on the past 4 quarters. Shares outstanding is the current number of shares as of today.
 

2. Press Refresh

3. The value is grabbed from the EPS growth that you see in the middle section of the valuation spreadsheet.

4. Excel forecast function description

Excel regression description

5. Automatic in the latest version

6. Normal earnings is what the earnings would be in a "normal" environment. You can enter it manually based on historical data or based on future trends. Up to you.

7. EPS growth

8. Valuation is more art than science. Based on my style and theory rather than any empirical data. Use what is best for your style.

9. It's in "The Intelligent Investor" not security analysis.

10. CAGR computations to smooth out any erratic data

11. Same as above.

Thanks Todd. Glad you like it.

For the Graham tab, make sure you use the "clear" button to erase all the user inputs I put into the yellow boxes.

Then press calculate and it will load the calculated numbers.