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Free Discounted Cash Flow calculator

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December 29, 2012 – Comments (0)

"[Intrinsic value is] the discounted value of the cash that can be taken out of a business during its remaining life." - Warren Buffett in Berkshire Hathaway Owner Manual  

Calculating the intrinsic value of a company is the cornerstone of value investing. Only when a stock of a solid company trades for less than its intrinsic value should you consider buying. There are several ways to calculate the intrinsic value of a company, but the most commonly used method is the Discounted Cash Flow (DCF) method. This method takes the net present value (NPV) of the sum of all future free cash flows the company will generate during its existence. The resulting value reflects how much the business underlying the stock is actually worth if you would sell off the whole business and all of its assets.

ValueSpreadsheet.com created a free, fully automatic DCF spreadsheet which only requires you to enter the ticker symbol. Check it out via the following link:

https://docs.google.com/spreadsheet/ccc?key=0AkDIbisT56fqdDFid29BSV9XZnNUcEhtSUJITHNWT3c

 

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