Simple Stock Valuation Tool

This simple stock valuation tool is what I use to calculate a rough estimate of the return I would expect from an investment given the current price and some simple financial statistics about the company.

I should stress that even though the estimated return looks precise, it is necessarily based on figures which will prove more and more in-accurate as we look further and further into the future.

I use the tool as a sanity check.  Given my assumptions about the earnings power of the company, I want to know if the company looks outrageously cheap (or expensive).  So please keep this in mind.

How to use the tool

The following inputs are required by the tool:

• Current Price - this is the current price of the shares in dollars and cents
• Return on Equity - this is the ROE or Return On Equity generated by the company.  This is available on more stock research websites.
• Dividend Payout Ratio - the percentage of earnings paid out by the company as dividends
• Earnings Per Share - the current earnings per share
• Number of Years - the number of years over which to calculate the returns
• End PE - this is the estimated price earnings ratio the company will trade on at the end of the valuation period

Please note: the tool is still very rough.  Let me know if it is at all useful and I will polish it up a little.

Current Price ($)
Return on Equity (%)
Dividend Payout Ratio (%)
Earnings Per Share
Number of Years
End PE

Year	EPS	Dividend	Share Price
{{result.year}}	{{result.eps | currency}}	{{result.dividend | currency}}	{{result.price | currency}}

Total Return: {{totalReturn | number:1}}%
Annualized Return: {{annualReturn | number:1}}%