Excel Stock Analyzer – V 2.0: The Buffett Approach to Valuation

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 projected 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 the Excel Stock Analyzer - V 2.0: The Buffett Approach to Valuation

 

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26 thoughts on “Excel Stock Analyzer – V 2.0: The Buffett Approach to Valuation

  1. Hina Mehul Shah

    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?

    Reply
  2. Hina Mehul Shah

    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?

    Reply
  3. Riyaz Mohammed Ibrahim

    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.

    Reply
  4. Riyaz Mohammed Ibrahim

    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.

    Reply
  5. Chintan Kapadia

    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.

    Reply
  6. Chintan Kapadia

    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.

    Reply

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