THE INVESTOR’S
DILEMMA III
Asking the right questions iii
How much of the manual should you read?
vi
Excel Functions vi
Valuesoft Examples vii
THE VALUESOFT STORY 1
CHAPTER 1 INSTALLATION
Installation and the Valuesoft Functions
Valuesoft Installation
Activating the Valuesoft Functions as Add-Ins
Removal
Calling the Valuesoft Functions
Getting Started with Company Data
Support
File Names
Viewing the Manual
CHAPTER 2 UNDERSTANDING FINANCIAL
STATEMENTS 9
Principal Financial Statements 9
Income Statement 9
Balance Sheet
Statement of Cash Flows
Financial Ratios CHAPTER
3 METHODS OF STOCK VALUATION AND SELECTION 14
Static Valuation Methods
Net Current Asset Value
CHAPTER 4 DISCOUNT CASH FLOW
METHODS 17
Question 1: What do we mean by the cash
that can be taken out of a business?
Earnings, owner earnings, cash earnings
and free cash flow
Question 2. How fast is this cash growing
and for how long?
Forecasts out to infinity
Earnings forecasts
Question 3. What discount rate should
you use?
Weighted Average Cost of Capital and
Required Return
Strengths and weaknesses Discount
Cash Flow methods CHAPTER
5 DIVIDEND DISCOUNT METHODS 26
Company paying no dividends
Free Cash Flow and Dividends
Payout Ratio Valuation
Residual Income Valuation
Clean Surplus Relation
Dividend Discount Methods in Valuesoft
9
Strengths and Weaknesses of the Dividend
Discount Methods
CHAPTER 6 PRICE RATIO METHODS
32
Price-Earnings Ratio
Earnings Forecasts
Analyst Forecasts of Earnings
Your Own Estimates of Earnings
Making accurate forecasts using STAEGR
Earnings and Sales
Return on Equity and Earnings Growth
USA Companies
Australian and New Zealand Companies
CHAPTER 7 VALUESOFT TEMPLATES
43
Level 1 Templates: Investment Return
Margin of Safety
Level 2 Templates: Stability and Growth
Rates
Margin of Safety Using Safety Functions
in Valuesoft
ARB Corporation
Template Addresses
CHAPTER 8 VALUESOFT INVESTMENT
FUNCTIONS 56
DDM
Variables
Discussion
Examples
DDMF
Variables
Discussion
Examples
ERI 9
Variables 9
Discussion 9
GIVF
Variables
Discussion
Examples
NCAV
Variables
Discussion
Examples
PAYBACK
Variables
Discussion
Examples
PEG
Variables
Discussion
Examples
PEGY
Variables
Discussion
Examples
PRESVAL
Variables
Discussion
Examples
RIV
Variables
Discussion
Examples
STRET
Variables
Discussion
Examples
STRETD
Variables 9
Discussion 9
Examples 9
SV
Variables
Discussion
Examples
TARG
Variables
Discussion
Examples
TARGD
Variables
Discussion
Examples
CHAPTER 9 VALUESOFT EARNINGS
FUNCTIONS 74
CAGR
Variables
Discussion
Examples
EFORECAST
Variables
Discussion
Examples
HGROWTH
Variables
Discussion
Examples
Technical Note
STAEGR
Variables
Discussion
Examples
SURPNEG
Variables
Discussion
Examples
SURPPOS
Variables
Discussion
Examples
CHAPTER 10 VALUESOFT OPTION
FUNCTIONS 77
EURO
Variables
Discussion 9
Examples
EUROF
Variables
Discussion
Examples
VOLATILITY
Variables
Discussion
Examples
APPENDIX A INTRODUCTION TO EXCEL
FUNCTIONS 83
Functions and function arguments
Types of Functions
Date Functions
Financial Functions
Logical Functions
Data Entry
Examples
GLOSSARY OF TERMS 89
REFERENCES
STRET, STRETD, TARG, TARGD, HGROWTH,
and STAEGR are trademarks of Dr. John Price. |
