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  • Value Formula

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    mystcrich
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    Bens formula for intrinsic value: intrinsic value = eps (8. +2 times anticipated growth over 7-10 years) 8.5: the constant represents the appropriate P-E ratio for a no-growth company. 4.4: the average yield of high-grade corporate bonds in 1962.

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    Bens formula for intrinsic value: intrinsic value = eps (8. +2 times anticipated growth over 7-10 years) 8.5: the constant represents the appropriate P-E ratio for a no-growth company. 4.4: the average yield of high-grade corporate bonds in 1962.

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    Value Formula

    Uploaded by

    mystcrich
    Bens formula for intrinsic value: intrinsic value = eps (8. +2 times anticipated growth over 7-10 years) 8.5: the constant represents the appropriate P-E ratio for a no-growth company. 4.4: the average yield of high-grade corporate bonds in 1962.

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    bens formula for intrinsic value:

    intrinsic value = EPS * (8.5 +2 times anticipated growth over 7-10 years)

    V: Intrinsic Value
    EPS: the companyÕs last 12-month earnings per share
    8.5: the constant represents the appropriate P-E ratio for a no-growth company a
    s proposed by Graham
    g: the companyÕs long-term (five years) earnings growth estimate
    4.4: the average yield of high-grade corporate bonds in 1962, when this model wa
    s introduced
    Y: the current yield on AAA corporate bonds
    V= eps* (8.5+2g) * 4.4 / y

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