Warren Buffett Method of Stock Valuation: Download free spreadsheet

Published on / By M. Pattabiraman Twitter: @pattufreefincal / 27 Comments

Published: December 27, 2014 at 9:04 am

Last Updated on June 3, 2022 at 11:16 pm

The Excel stock analyzer now has two spreadsheets based on Warren Buffett’s approach to stock valuation.

The valuation sheets have been built from the ground up  based on this article: Valuing Stocks the Warren Buffett Way

The article mentions that more details can be found at:

“Buffettology: The Previously Unexplained Techniques That Have Made Warren Buffett the World’s Most Famous Investor” (I have not read the book)

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Please do not use this sheet unless you understand the above article. Since I have nothing new to add, I see little point in describing the valuation sheets. So let me limit myself to the following:

Some questions for the investor to ask:

  1. What is the earnings yield? How does it compare with long-term govt. bond yield?
  2. How do returns project with historical earnings growth fare?
  3. What is the sustainable growth rate of the company, based on ROE and dividend payout ratio?
  4. What is the return on investment based on book value growth rate and for different PE values?

The sheets provide different ways of answering these questions by suitable choice of inputs.  Historical stock price from Yahoo Finance (auto-downloader included in the analyzer) are necessary to use valuation sheets 2 and 3.

I hope the version 2.0 of the Excel Stock analyzer will help the user answer these questions. Please use the sheet only after reading the sources listed in the sheet, understanding and verifying the formulae used in the sheet and when you are comfortable with them.

Here is a screenshot (click on it to enlarge)

Excel-stock-analysis-spreadsheet-5

Download version 14th of the freefincal stock analyzer June 16th, 2019 <== latest!

(This is for Indian stocks). For a full list of features available, see this post.

For U.S. stocks use this free sheet: U.S. STOCK ANALYSIS SPREADSHEET