Fair Value Calculator – DCF

The following calculator will help you find the Fair Value of a stock using one very simple method.

This calculation applies DCF method on EPS (earnings per share) and EPS growth rate to find the fair value.

If you have accounting or equity research background, could you please test and let me know your feedback.

[The formulae used are:

1) Growth Value = EPS * x * (1 – xn)/(1 – x)

where ;

n = Normal growth duration in years

g = Growth rate

d = Discount rate

x = (1+g)/(1+d)

2) Terminal Value = EPS * xn  * y * (1 – ym)/(1 – y)

where;

m = terminal growth duration in years

t = Terminal growth rate

y = (1+t)/(1+d)

3) Fair Value = Growth Value + Terminal Value ]

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