Valuation Calculator

 

Use this form to calculate a value. You will need the diluted earnings per share data for the last 9 years.  Also, here’s some background information and explanation of where this formula comes from.

Current Year EPS:
Previous Year EPS:
2 Years Prior EPS:
3 Years Prior EPS:
4 Years Prior EPS:
5 Years Prior EPS:
6 Years Prior EPS:
7 Years Prior EPS:
8 Years Prior EPS:
9 Years Prior EPS: (for reference only, not needed for calculation)
EPSmg =
Value based on ModernGraham’s estimate of growth =
Value based on 3% growth =
Value based on no growth =

 

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18 comments for “Valuation Calculator

  1. James Buddenhagen
    February 10, 2014 at 9:33 am

    Is there any chance of evaluating Holly Frontier Corp. (HFC)?

    • February 12, 2014 at 8:28 am

      Thanks for asking. I can add it to the list, but right now I’m trying to work my way through the S&P 500 companies, so it may be a while before I get to HFC.

      • James Buddenhagen
        February 12, 2014 at 11:24 am

        Thank You Sir..

  2. John Brandy
    March 5, 2014 at 9:32 pm

    Hi Ben -

    How do I read the NCAV number published in Stocks and Screens as a dollar figure? I’m used to it representing the price relative to value and that it shouldn’t be higher than about 67% ideally, but I could obviously be misunderstanding that.

    Thanks!

    • March 6, 2014 at 7:10 am

      John,

      The NCAV number is the Net Current Asset Value, and its normal unit of measurement is the dollar. What you’ve seen other places is probably actually the Price / NCAV calculation mislabeled as the NCAV itself. The formula for NCAV is NCAV = (Current Assets – Total Liabilities) / Outstanding Shares. To get the percentage figure you’re used to, just take the current price and divide it by the NCAV.

      If a company is trading below its NCAV, there is clearly an opportunity for profit, as theoretically investors could purchase the entire company, pay off all liabilities with the company’s current assets (cash, inventory, etc.) and still have cash left over in addition to any of the non-current assets.

      Obviously, most companies will not trade below NCAV, and in fact most companies don’t even have a positive NCAV to begin with.

      I hope that answers your question. Thanks for asking!

  3. Matthew Nurre
    March 6, 2014 at 2:57 pm

    Discover Financial Services (DFS) would be a great company to evaluate! Based on the Modern Graham valuation It is worth $132 but it’s currently trading at $59.

    • March 18, 2014 at 10:01 am

      Matthew – DFS is coming up soon on the list, so check back in the next week or two!

  4. Marie Babcock
    March 13, 2014 at 12:13 pm

    I would like to subscribe but I want to use my credit card, not paypal. Can I do this? If so, how?

  5. fer
    March 14, 2014 at 2:53 pm

    Please tell me what exactly is the meaning of the PEmg Ratio?
    I imagine the lower the number the better it is, but is there a threshold above which we need not dare to go?
    thanks!

    • March 18, 2014 at 10:24 am

      Fer,

      The PEmg ratio is the Price / EPSmg. EPSmg is the normalized earnings per share, which is a weighted-average of the last 5 years of earnings data. The PEmg ratio is very similar to the traditional PE ratio, and you are correct that the lower the number is better. The Defensive Investor requires a PEmg ratio less than 20.

  6. Ronald Johnson
    July 16, 2014 at 4:34 pm

    Is there any chance of your evaluating PMI,Inc. (Phillip Morris International) ? Have there been back-issues of a stock-evaluation of this stock. I do not mean Altria,Inc., the domestic USA company that sells Phillip Morris products, such as cigarettes, beer, and real estate.

    • July 25, 2014 at 2:05 pm

      Ronald,

      Phllip Morris International is regularly evaluated by ModernGraham, and you can find the information in the Valuation Index which lists all of the companies reviewed by ModernGraham.

  7. Kevin
    July 18, 2014 at 10:15 am

    Ben,

    Although it’s not needed for the Valuation Calculator section, I’m wondering where you find your Book Value? I’ve used Yahoo Finance and that gets me close to your numbers but always a little over (which makes them less conservative and therefore undesirable to me).

    Do you calculate it yourself from the official financial reports?

    This website is an incredible resource for a new investor trying to get off on the right foot and I appreciate everything you do here.

    • July 25, 2014 at 2:02 pm

      Kevin,

      I calculate book value by taking the Total Assets less the Total Liabilities, divided by the outstanding shares. The figures I use for each part of the equation come from MSN Money or the company’s official filings with the SEC.

      I’m glad you’re enjoying the site!

  8. John C Brandy
    July 25, 2014 at 4:54 pm

    Hi Benjamin -

    I like the new version of the monthly stocks and screens spreadsheet. I don’t know how new it is, I last got one in March I think when there was multiple tables to deal with and this is much nicer.

    Question though, since the new version doesn’t have a column explicitly labeled NCAV, can I assume that the MG Value is the same thing?

    Thanks!

    • July 25, 2014 at 5:15 pm

      John,

      The spreadsheet is the raw data, and does not include the NCAV. You can find the NCAV by opening the pdf version, which includes all the different screens that you’ve seen before.

      MG Value is the intrinsic value estimate calculated by the ModernGraham valuation model, based on Benjamin Graham’s formula from The Intelligent Investor.

      Hope that helps, and I’m glad you’re enjoying the content!

      -Ben

  9. Sharlott
    August 15, 2014 at 10:08 pm

    Hello, I would like to receive a monthly list of stocks that are currently priced below their NCAV. Is this the right site? I subscribed but haven’t received anything yet.

    Thank you!

    • August 18, 2014 at 11:12 am

      Sharlott,

      We do provide NCAV information for all of the companies we cover. However, at this point in time none of the 360+ companies are trading below NCAV.

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