Warren Buffett Method of Stock Valuation: Download free spreadsheet

Last Updated on

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)

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

 

Do share if you found this useful

Create a "from start to finish" financial plan with this unique open-source robo advisory software template


 Don't like ads but want to support the site? Subscribe to the ad-free newsletter! 
You will get the full post-ad-free delivered to your inbox for Rs. 3000 a year. Follow this link to read the terms and sign up! 


About the Author M Pattabiraman author of freefincal.comM. Pattabiraman is the co-author of two books: You can be rich too with goal based investing and Gamechanger. “Pattu” as he is popularly known, publishes unbiased, promotion-free research, analysis and holistic money management advice. Freefincal serves more than one million readers a year with numbers based analysis on topical issues and has more than a 100 free calculators on different aspects of insurance and investment analysis, including a robo advisory template for use by beginners. Contact information: freefincal {at} Gmail {dot} com He conducts free money management sessions for corporates (see details below). Previous engagements include World Bank, RBI, BHEL, Asian Paints.

Content Policy

Freefincal has original unbiased, conflict-of-interest-free,  topical reports, reviews, commentary and analysis on all aspects of personal finance like mutual funds, stocks, insurance etc. All guest authors and contributors to the site also do not have any conflict of interest. If you find the content useful, please consider supporting us by (1) sharing our articles and (2) disabling ad-blockers for our site if you are using one. No promotional content We do not accept sponsored posts and link exchange requests from content writers and agencies. This is our privacy policy Our website is non-profit in nature. The revenue from the advertisement will only be used for hosting charges, domain registration charges, specific plugins necessary for traffic growth and analytics services for search engine optimisation.
Want to conduct a sales-free "basics of money management" session in your office?
I conduct free seminars to employees or societies. Only the very basics and getting-started steps are discussed (no scary math):For example: How to define financial goals, how to save tax with a clear goal in mind; How to use a credit card for maximum benefit; When to buy a house; How to start investing; where to invest; how to invest for and after retirement etc. depending on the audience. If you are interested, you can contact me: freefincal [at] Gmail [dot] com. I can do the talk via conferencing software, so there is no cost for your company. If you want me to travel, you need to cover my airfare (I live in Chennai)

Connect with us on social media


Do check out my books


You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingMy first book is meant to help you ask the right questions, seek the right answers and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.  It is also available in Kindle format.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You WantGamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantMy second book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at low cost! Get it or gift it to a young earner

The ultimate guide to travel by Pranav Surya

Travel-Training-Kit-Cover This is a deep dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step.  Get the pdf for ₹199 (instant download)

Free Apps for your Android Phone

All calculators from our book, “You can be Rich Too” are now available on Google Play!
Install Financial Freedom App! (Google Play Store)
Install Freefincal Retirement Planner App! (Google Play Store)
Find out if you have enough to say "FU" to your employer (Google Play Store)

Blog Comment Policy

Your thoughts are vital to the health of this blog and are the driving force behind the analysis and calculators that you see here. We welcome criticism and differing opinions. I will do my very best to respond to all comments asap. Please do not include hyperlinks or email ids in the comment body. Such comments will be moderated and I reserve the right to delete the entire comment or remove the links before approving them.

27 Comments

  1. Thanks. You are doing wonderful work for every one. I have been reading your articles past many days . I am really glad we are getting so much help from you. Need one more help I can download V.02 of stock analyser. from where can I download it?

  2. Thanks. You are doing wonderful work for every one. I have been reading your articles past many days . I am really glad we are getting so much help from you. Need one more help I can download V.02 of stock analyser. from where can I download it?

  3. I have requested this long back, could you please consider using Google Docs or Microsoft Online, so that we can use in any platform even in mobile devices using their apps.

    I understand those services are limited in functionalities but its I find Microsfit Oline is comparable to offline versions.

  4. I have requested this long back, could you please consider using Google Docs or Microsoft Online, so that we can use in any platform even in mobile devices using their apps.

    I understand those services are limited in functionalities but its I find Microsfit Oline is comparable to offline versions.

  5. This is very useful for understanding stock valuations. Very good work Mr. Pattabiraman Murari.

    I will try to use it for some of the stocks I track. Will come back to you with my results.

    Thanks.

  6. This is very useful for understanding stock valuations. Very good work Mr. Pattabiraman Murari.

    I will try to use it for some of the stocks I track. Will come back to you with my results.

    Thanks.

Leave a Reply

Your email address will not be published. Required fields are marked *