Comparing Discounted Cash Flows and Graham'S Formula: Parameters Parameters
Comparing Discounted Cash Flows and Graham'S Formula: Parameters Parameters
Comparing Discounted Cash Flows and Graham'S Formula: Parameters Parameters
With this simulator you can compare the fair value given by a two-stage discounted cash flows model with the intrinsic valu
Graham's Formula.
Cells to modify
Conclusion :
200.0
180.0
160.0
140.0
Cash-Flows
120.0
100.0
Present value of
80.0 future cash flows
60.0 (Discounted Cash-
40.0 Flows)
20.0
0.0
21 25 29 33 37 41 45 49 53 57 61 65 69
20 20 20 20 20 20 20 20 20 20 20 20 20
HAM's FORMULA
54.68
8.5
2
of Graham's Formula
= Current Earnings x (8.5 + 2xG) = 2500.69