Intrinsic Value Calculator (Discounted Earnings Per Share Method 10 years

(Be consistent with the denominations used. Usually Millions $)

KEY IN THE VALUES IN WHITE BOX

Name of Stock

American International Group

Stock Symbol

AIG
$4.26

Current EPS

Year
EPS (Projected)
Discount Factor
Discounted Value

2007
$4.86
0.96
$4.67

2008
$5.54
0.92
$5.12

2006

Current Year

14%

EPS Growth Rate

I n trin s ic V a lu e :

4%

Discount Rate

2009
$6.31
0.89
$5.61

2010
$7.19
0.85
$6.15

2011
$8.20
0.82
$6.74

2012
$9.35
0.79
$7.39

$ 7 3 .0 6

NB: Take the last Fiscal Year as the Current Y

NB: Use the 3 months US Treasury Rate

2013
$10.66
0.76
$8.10

2014
$12.15
0.73
$8.88

2015
$13.85
0.70
$9.73

Note: This assum es EPS growth rate remains constant throughout the 10 years
In certain cases, you m ay want to lower or increase the growth rate after a few years.
Intrinsic Value Calculator
(Discounted Earnings Per Share Method 10 years)

$18.00
$16.00
$14.00

Row 11
Row 13

Value

$12.00
$10.00
$8.00
$6.00
$4.00
$2.00
$0.00
2007

2008

2009

2010

2011

2012
Year

2013

2014

2015

2016

Intrinsic Value Calculator

(Discounted Earnings Per Share Method 10 years)

$18.00
$16.00
$14.00

Row 11
Row 13

Value

$12.00
$10.00
$8.00
$6.00
$4.00
$2.00
$0.00
2007

2008

2009

2010

2011

2012
Year

2013

2014

2015

2016

ted Earnings Per Share Method 10 years)

nominations used. Usually Millions $)

NB: Take the last Fiscal Year as the Current Year

NB: Use the 3 months US Treasury Rate

0
9
5
5

2011
$8.20
0.82
$6.74

2012
$9.35
0.79
$7.39

2013
$10.66
0.76
$8.10

2014
$12.15
0.73
$8.88

2015
$13.85
0.70
$9.73

ue Calculator
er Share Method 10 years)

2012
Year

2013

2014

2015

2016

2016
$15.79
0.68
$10.67

ue Calculator
er Share Method 10 years)

2012
Year

2013

2014

2015

2016

Intrinsic Value Calculator (Discounted Cash Flow Method 10 years)

(Be consistent with the denominations used. Usually Millions $)

KEY IN THE VALUES IN WHITE BOX

Name of Stock

Nike

P V o f 1 0 y r C a s h flo w s

Stock Symbol

NKE

I n t r in s ic V a lu e p e r s h a r e

$ 1 9 , 2 m2 0i

$ 7 3 .3

$1,514.00 millions

Operating Cash Flow (current)

9.51%

Cash flow growth rate

Current Year

262.0 millions

No. of Shares Outstanding

Year
2007
C a s h F lo w ( P r o je c te d ) $ 1 ,6 5 7 .9 8
D is c o u n t F a c to r
0 .9 5
D is c o u n te d V a lu e
$ 1 ,5 7 9 .0 3

2008
$ 1 ,8 1 5 .6 6
0 .9 1
$ 1 ,6 4 6 .8 5

2009
$ 1 ,9 8 8 .3 2
0 .8 6
$ 1 ,7 1 7 .5 9

2006

NB: Take the last Fiscal Year as th

5%

NB: Use the 3 months US Treasur

Discount Rate

2010
$ 2 ,1 7 7 .4 1
0 .8 2
$ 1 ,7 9 1 .3 6

2011
$ 2 ,3 8 4 .4 9
0 .7 8
$ 1 ,8 6 8 .3 1

2012
$ 2 ,6 1 1 .2 5
0 .7 5
$ 1 ,9 4 8 .5 6

2013
$ 2 ,8 5 9 .5 8
0 .7 1
$ 2 ,0 3 2 .2 5

2014
$ 3 ,1 3 1 .5 3
0 .6 8
$ 2 ,1 1 9 .5 4

2015
$ 3 ,4 2 9 .3 3
0 .6 4
$ 2 ,2 1 0 .5 8

Note: This assum es EPS growth rate rem ains constant throughout the 10 years
In certain cases, you m ay want to lower or increase the growth rate after a few years.

Value

Intrinsic Value Calculator

(Discounted Cash Flow Method 10 years)
$4,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
2007

Row 13
Row 15

2008

2009

2010

2011
Year

2012

2013

2014

2015

2016

2016
$ 3 ,7 5 5 .4 6
0 .6 1
$ 2 ,3 0 5 .5 3

Value

Intrinsic Value Calculator

(Discounted Cash Flow Method 10 years)
$4,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
2007

Row 13
Row 15

2008

2009

2010

2011
Year

2012

2013

2014

2015

2016

counted Cash Flow Method 10 years)

enominations used. Usually Millions $)

011
8 4 .4 9
78
6 8 .3 1

P V o f 1 0 y r C a s h f lo w s

$ 1 9 , 2 m2 0i l l i o n

I n t r in s ic V a lu e p e r s h a r e

$ 7 3 .3 6

NB: Take the last Fiscal Year as the Current Year

NB: Use the 3 months US Treasury Rate

2012
$ 2 ,6 1 1 .2 5
0 .7 5
$ 1 ,9 4 8 .5 6

2013
$ 2 ,8 5 9 .5 8
0 .7 1
$ 2 ,0 3 2 .2 5

2014
$ 3 ,1 3 1 .5 3
0 .6 8
$ 2 ,1 1 9 .5 4

2015
$ 3 ,4 2 9 .3 3
0 .6 4
$ 2 ,2 1 0 .5 8

2016
$ 3 ,7 5 5 .4 6
0 .6 1
$ 2 ,3 0 5 .5 3