Wednesday 9 July 2014

Price vs Value on Financial Statement Analysis Template (v1.70)

Buffett said "In the business world, the rearview mirror is always clearer than the windshield." 

We can perform financial statement analysis and determine the company quality based on it's pass result. But, what price are you willing to pay for the stock of a good company?

As what Mr. Chong posted on his article, Investment success doesn’t come from “buying good things,” but rather from “buying things well.” Tons of research has shown that investing in good companies is not necessarily a winning strategy. This is because generally the market has built into it these expectations. The biggest danger is that the firm will lose its luster over time and that the premium paid will dissipate.

I have created "CL-P_V" workshet  on the Financial Statement Analysis Template in order to checkout what is the relationship between the Stock Price and Company's Value based on it's historical price and financial data. And, this worksheet is a good tool to help us to inspect if there is any price value divergence in a company.

As usual, the "CL-P_V" 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. 

 
You can click here to access the said template on the One Drive. 

Happy hunting!

You may interest to view the previous release on the template:-

References:-
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