By clicking here you can download the Excel template that I use for this valuation methodology. The template is straight forward and follow the outline I have made in the article. yo need to have several input into the template among them:
- Common size statements (balance Sheet and Income statement) I suggest to have an average of 5-7 years rather than latest statements to normalize the results of cyclical businesses,
- cost of debt,
- cost of equity, or beta and risk premium,
- number of shares outstanding, and
- Judgment, that comes from detail knowledge of the company and industry, of the company's ability to sustain revenue growth and expense and asset relationship to revenue over time. (This is the most important input you can put into any valuation tool)
hope the spread sheet will help you.
your value seeking investor,
Sami
3 comments:
Very nice. Great Thought.
thanks
It's an excellently built sheet!
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