Intrinsic Value Spreadsheet

The spreadsheet is now placed under a basic and premium version. The basic version will be downloadable for free while the premium version can be purchased here.

Previously I put up a Graham intrinsic value spreadsheet. As with any intrinsic value calculating method, there are shortcomings and disadvantages. Even with this new one that I have uploaded, there are disadvantages but it is logical and reasonable. This spreadsheet utilises the Discounted Cash Flow method, which I believe to be the most logical method of calculating a company’s value.

Valuing a Business

My intrinsic value calculation is based off FWallStreet’s method. The original spreadsheet can be downloaded from his post on JNJ. The link to download is at the end of the post.

My version is just an enhanced version of the original spreadsheet. The underlying calculations are the same except for a few tweaks to the formula and variables. But the theory is the same. To fully understand, please read the JNJ post I linked to above.

For more detailed information on why you must value businesses before buying any stocks, the four part series is an excellent read and highly educational for any investor.

Part 1
Part 2
Part 3
Part 4

How to Use

If you have read my AAPL valuation post, you would have seen the screen shots of what it looks like. If you have personally used either the Graham intrinsic value spreadsheet or the Personal Portfolio spreadsheet you will know how much time you save with all the automatic data retrieval and updating.

Once you have the spreadsheet working, just be sure to enter the ticker ONLY in the yellow highlighted box. Everything starts from there.

How to Install

You have to unzip the file into c:/program files/SMF Add-In
If you put it in any other folder it wont work.

For Excel 2003:

1. On the Tools menu, click Add-Ins.
2. Click the Browse button and navigate to the smf add ins folder
3. Select the add in file that you see and then click OK.
4. Click Yes to any file copy or overwrite prompts.
5. Verify the Stock Market Function add in box is checked.
6. Press OK.

For Excel 2007:

1. Click the orb and then click on excel options
2. Click Add in
3. Down the bottom there is a drop down list and next to it there is a move button (I think). Click on the button
4. Navigate to the SMF add in folders
5. select the file and then click OK
6. Verify the Stock Market Function add in box is checked
7. Press OK

Open the spreadsheet, enter and ticker and you will see a “calculating xx%” in the bottom right corner. You are good to go.

Note: if you download the file, copy it to a USB and then copy it back to another folder or computer, MAKE SURE that the data in the “Statements” tab is pointing to c:/program files/SMF Add-in and not your USB drive.

Features

Ive enhanced the spreadsheet by displaying the following:

• financial statements from Morningstar.com

• calculating intrinsic value

• graphing the historical price and intrinsic value together

• includes the Graham intrinsic valuation spreadsheet

• provides basic ratios for competitors

• a checklist of questions regarding the company

• The spreadsheets DO NOT work for financial companies. Since financial statements for financial companies are complicated to figure out, even Morningstar does not have any data.

Download Section

Have fun investing. If you find some sweet deals, post a comment and let me know.

Old School Value Intrinsic Value Spreadsheet
Randy’s SMF Add-in

The premium version can be purchased here.

You may also like:

• Benjamin Graham Formula Valuation Spreadsheet
• Personal Portfolio vs S&P 500 Spreadsheet
• Basic and Premium Spreadsheets
• 5 Year Intrinsic Value Spreadsheet
• 10 Year History Chart Spreadsheet