Calculating Value-Step 7: Calculate the final year’s P/E ratio and price (Post 9)

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Final year’s P/E ratio The final step is to incorporate the market P/E with the relative P/E and then figure the final year’s price. We performed the previous two steps in order to be able to do this one. What you will do here is multiply the final year’s market P/E by the relative P/E. […]

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Calculating Value-Steps 5 & 6: Calculating P/E Ratios (Post 8)

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STEP 5 AND 6 CALCULATING P/E RATIOS In the next two steps we will be calculating the P/E ratios needed for our final year’s EPS valuation. In step 5 we will calculate the market P/E, and in step 6 we will calculate the relative P/E (sometimes called the P/E relative). The P/E ratio stands for […]

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Calculating Value-Steps 3 & 4: The Projected Income Statement (Post 7)

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Calculating Value is available as a free resource and posts will be made periodically. Please support the website by purchasing a copy for $47. It has an abundance of great information and helps us maintain the content on this website. Click the book icon to purchase. THE PROJECTED INCOME STATEMENT Introduction This is by far […]

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Calculating Value-Step 2: Current price of the stock-present value of costs (Post 6)

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In step 2 you will get the current price of the stock. I should caution you a little bit; As you know after earnings or after big events a price sometimes swings in a certain direction and often goes back up/down to the level it was before the event. If your current price is taken […]

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Weekly watchlist $MRK $JNJ $PG $PEP (Week of 4/13/15-4/17/15)

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MRK is right now at the top of my list. I’m looking for a long term hold on this company. Solid fundamentals, I’m just waiting for the price to retrace just a little bit more to hit a support level around 55.60-56.20. JNJ another solid company for the long term. I would like to see […]

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The drop in oil prices….explained

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The first question my 5th grade history teacher asked me was why we had to study history. My answer was that it helps us seem more intelligent. If we are sitting at a table talking about historic events the person who is engaged in the conversation seems to be intelligent. That was my logic as […]

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Weekly watchlist AAPL (Week of 3/23/15-3/27/15)

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Yes, only one ticker symbol on the watchlist this week. There is nothing right now that is setting up to be a good trade on the stocks that I like to look at. Last week CSCO set up failed and I closed for a small loss, this week WMT set up was stagnant and I […]

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Calculating Value-Step 1: Calculate the Capital Asset Pricing Model (CAPM) (Post 5)

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The first step in determining a company’s fair price is to calculate the Capital Asset Pricing Model (CAPM). Before you get scared of this term and run away I should tell you that it is a very simple calculation that requires easily accessible numbers. Before I show you how to calculate the CAPM I want […]

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Weekly Watchlist SPY, FXI, WMT, PEP (Week of 2/9/15-2/13/15)

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On this week’s watchlist, we have our standard market watch and 2 picks I consider “safe”. SPY Watch this level this week. We could see a break higher through this triple top or it could fail miserably. Either way the SPY should be at the top of your watchlist going into this week. FXI The […]

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Weekly Watchlist IMGN, APPL, CSCO, SPX, GSK, IOC (Week of 12/15/14-12/19/14)

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IMGN First on our list today is a long I took last week Monday on IMGN. This was a CC play and I wrote an $8 option with a December expiration. I attempted to close my position on Thursday of last week because I was already above max profit, however; the spread was way too […]

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