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    Intrinsic Value Calculator (Discounted Earnings Per Share Method 10 Years)

    Uploaded by

    Martin Rodriguez
    The document calculates the intrinsic value of American International Group (AIG) stock using a discounted earnings per share valuation method. It projects AIG's earnings per share over the next 10 years based on a 14% annual growth rate from the current EPS of $4.26. It discounts these projected EPS figures using a 4% discount rate to calculate a discounted value for each year. Summing the discounted values results in an intrinsic value of $73.06 for AIG stock. A chart displays the projected and discounted EPS over the 10-year period.

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    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd

    Intrinsic Value Calculator (Discounted Earnings Per Share Method 10 Years)

    Uploaded by

    Martin Rodriguez
    59 views6 pages
    The document calculates the intrinsic value of American International Group (AIG) stock using a discounted earnings per share valuation method. It projects AIG's earnings per share over the next 10 years based on a 14% annual growth rate from the current EPS of $4.26. It discounts these projected EPS figures using a 4% discount rate to calculate a discounted value for each year. Summing the discounted values results in an intrinsic value of $73.06 for AIG stock. A chart displays the projected and discounted EPS over the 10-year period.

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    The document calculates the intrinsic value of American International Group (AIG) stock using a discounted earnings per share valuation method. It projects AIG's earnings per share over the next 10 years based on a 14% annual growth rate from the current EPS of $4.26. It discounts these projected EPS figures using a 4% discount rate to calculate a discounted value for each year. Summing the discounted values results in an intrinsic value of $73.06 for AIG stock. A chart displays the projected and discounted EPS over the 10-year period.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    59 views6 pages

    Intrinsic Value Calculator (Discounted Earnings Per Share Method 10 Years)

    Uploaded by

    Martin Rodriguez
    The document calculates the intrinsic value of American International Group (AIG) stock using a discounted earnings per share valuation method. It projects AIG's earnings per share over the next 10 years based on a 14% annual growth rate from the current EPS of $4.26. It discounts these projected EPS figures using a 4% discount rate to calculate a discounted value for each year. Summing the discounted values results in an intrinsic value of $73.06 for AIG stock. A chart displays the projected and discounted EPS over the 10-year period.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    of 6

    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 Intrinsic Value: $73,06


    Stock Symbol AIG

    Current EPS $4.26 Current Year 2006 NB: Take the last Fiscal Year as the Current Y

    EPS Growth Rate 14% Discount Rate 4% NB: Use the 3 months US Treasury Rate

    Year 2007 2008 2009 2010 2011 2012 2013 2014 2015
    EPS (Projected) $4,86 $5,54 $6,31 $7,19 $8,20 $9,35 $10,66 $12,15 $13,85
    Discount Factor 0,96 0,92 0,89 0,85 0,82 0,79 0,76 0,73 0,70
    Discounted Value $4,67 $5,12 $5,61 $6,15 $6,74 $7,39 $8,10 $8,88 $9,73

    Note: This assumes EPS growth rate remains constant throughout the 10 years
    In certain cases, you may 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 EPS(Projected)
    Value

    $14.00 Discounted Value


    $12.00
    $10.00
    $8.00
    $6.00
    $4.00
    $2.00
    $0.00
    2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
    Year
    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 2011 2012 2013 2014 2015 2016


    19 $8,20 $9,35 $10,66 $12,15 $13,85 $15,79
    5 0,82 0,79 0,76 0,73 0,70 0,68
    15 $6,74 $7,39 $8,10 $8,88 $9,73 $10,67

    ator
    Per Share Method 10 years)

    2012 2013 2014 2015 2016


    Year
    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 Adobe


    PV of 10 yr Cash flows $108.778 mil
    Stock Symbol ADBE
    Intrinsic Value per share $228,05
    Operating Cash Flow (current) $5,840.00 millions

    Cash flow growth rate 18.28% Current Year 2021 NB: Take the last Fiscal Year as t

    No. of Shares Outstanding 477.0 millions Discount Rate 7% NB: Use the 3 months US Treasu

    Year 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
    Cash Flow (Projected) $6.907,55 $8.170,25 $9.663,77 $11.430,31 $13.519,77 $15.991,19 $18.914,38 $22.371,93 $26.461,51 $31.298,68
    Discount Factor 0,94 0,88 0,83 0,78 0,73 0,69 0,64 0,60 0,57 0,53
    Discounted Value $6.485,96 $7.203,38 $8.000,15 $8.885,05 $9.867,82 $10.959,31 $12.171,52 $13.517,82 $15.013,03 $16.673,62

    Note: This assumes EPS growth rate remains constant throughout the 10 years
    In certain cases, you may want to lower or increase the growth rate after a few years.

    Intrinsic Value Calculator


    (Discounted Cash Flow Method 10 years)
    $35,000
    Value

    $30,000 Cash Flow(Projected)


    $25,000 Discounted Value
    $20,000
    $15,000
    $10,000
    $5,000
    $0
    2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
    Year
    counted Cash Flow Method 10 years)
    enominations used. Usually Millions $)

    PV of 10 yr Cash flows $108.778 million


    Intrinsic Value per share $228,05

    NB: Take the last Fiscal Year as the Current Year

    NB: Use the 3 months US Treasury Rate

    26 2027 2028 2029 2030 2031


    19,77 $15.991,19 $18.914,38 $22.371,93 $26.461,51 $31.298,68
    73 0,69 0,64 0,60 0,57 0,53
    67,82 $10.959,31 $12.171,52 $13.517,82 $15.013,03 $16.673,62

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