Previously, I have prepared numerous excel template on top of the Financial Statement Analysis Template to calculate the intrinsic value of a company based on it's earnings capability.
The total stock price is always made up of two parts, the asset value and the growth value. And, we know that it might not easy to forecast a company growth. For a risk adverse player, we can value a company based on Graham Net Net and only look on the company's balance sheet for the valuation.
NCAV or NNWC designed by Graham to be used as a measuring stick for cheapness and show you what the assets of a company is worth.
NCAV or NNWC designed by Graham to be used as a measuring stick for cheapness and show you what the assets of a company is worth.
And, I have incoporated the Asset Valuation on the Financial Statement Analysis Template in order to perform the valuation based on company's balance sheet. You can click here to access the said template on the One Drive.
The "V-Asset" will be auto pick all the required data after you filled in the purple colour input worksheet as per specified in Financial Statement Analysis Template.
This worksheet will calculate the below asset based value:-
- Net Net Working Capital (NNWC)
- Net Current Asset Value (NCAV)
- Revised Net Asset Value (RNAV)
- Net Tangible Asset (NTA)
- Net Asset (NA)
- Total Asset (TA)
- Enterprise Value (EV)
and summarize it on the "Summary of Intrinsic value" sections.
Do review the Calculation Detail section in order to check out the how the excel calculate the intrinsic value. You can override the % variable for NNWC and RNAV in the grey color cell. Do review the underlying asset from annual report and estimate the value of the asset based on your own thought.
After that, do remember to answer the checklist in order to ensure the quality of the net net candidate as per suggested by Graham and Evan Bleker.
By expanding each of the check list items, the excel will populate related data for your review.
Happy hunting!
You may interest to view the previous release on the template:-
- Dividend Discount Model (DDM) on Financial Statement Analysis Template (v1.40)
- Absolute PE Valuation Model on Financial Statement Analysis Template (v1.30)
- Magic Formula on Financial Statement Analysis Excel Template (v1.20)
- DCF Analysis Excel Template (v1.11) - to include Non Operating Assets
- Discounted Cash Flow (DCF) Analysis Excel Template (v1.10)
- Analysis Template v1.02 and Answer to the Questions
- Financial Statement Analysis Template
References:-
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