rule number 1

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adam2008
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rule number 1

Postby adam2008 » Fri Feb 08, 2013 2:56 pm

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
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Joined: Fri May 04, 2007 8:14 pm
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Re: rule number 1

Postby VinTek » Fri Feb 08, 2013 6:10 pm

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

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

Postby adam2008 » Sat Feb 09, 2013 2:28 am

I don't

I just give it a try

VinTek
Posts: 2217
Joined: Fri May 04, 2007 8:14 pm
Contact:

Re: rule number 1

Postby VinTek » Sat Feb 09, 2013 9:45 am

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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