## rule number 1

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adam2008
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Joined: Thu Feb 07, 2013 3:43 pm
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### rule number 1

I have read Phil Town's book (rule number 1)

I wanted to calculate the sticker price of few stocks, but I'm not sure I did it correctly.

Can someone please help me by double checking?

1) Goog

Current EPS = 32.46
10 years
EPS Growth Rate =
(a) 25% according to analytics
(b) 15 according to my avg

Phil's calculators show:
(a) Future EPS = \$302.31
(b) Future EPS = \$131.32

I add:
Future PE = 19.8

Phil's calculators show:
(a) Future Value = \$5768.07
(b) Future Value = \$2600.14

I add:
10 yeas
minimum ROI 15%

Phil's calculators show:
(a) Sticker Price = \$1425.78
(b) Sticker Price = \$642.71

what's the correct one?

2)SUBX

I get a price of 53\$ which is quite close to today's 56\$. make sense?

3) Apple

Current EPS = 44.15
10 years
EPS Growth Rate = 54

I get:
1. Future EPS = \$3312.36

I add:
Future PE 11.9

i get:
2. Future Value = \$39417.08

I add
10 years
minimum ROI 15%

and get:

3. Sticker Price = \$9743.30

meaning today's price is a bargine! 453\$
is it?

VinTek
Posts: 2227
Joined: Fri May 04, 2007 8:14 pm
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### Re: rule number 1

And why do you think Phil's book will make you rich?

adam2008
Posts: 2
Joined: Thu Feb 07, 2013 3:43 pm
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### Re: rule number 1

I don't

I just give it a try

VinTek
Posts: 2227
Joined: Fri May 04, 2007 8:14 pm
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### Re: rule number 1

adam2008 wrote:I don't

I just give it a try

That's not a very good foundation for what to do with your money. We discussed that book here in 2006. Have a look.

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