Friday 11 July 2014

Traffic Light Price Monitoring System on Financial Statement Analysis Template (v1.80)

In the previous release (version 1.70), I have built the CL-P_V sheet to monitor the stock price vs the company value. My objective is to buy a company when it is selling cheap by comparing its stock pice with the company value.

In the current release (v1.80), I have built 3 sheets - V-DY, V-EY, and V-EY_JG in order to compare the price based on its historical Dividend Yield, ordinary Earning Yield(E/P) and Joel Greenblatt's Earning Yield (Magic Formula) respectively. The worksheet 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.

Based on normal distribution, the DY and EY should between the Standard Deviation from the Mean. And, we are using this theory to buy a company when it is selling cheap (price near to the high band); sell a company when we can sell it in a high price (price near to the low band).

I get the idea from Emily's Video and present a traffic light alike dashboard in the worksheet in order for us to monitor the share price vs its value:-

  • Red - Expensive
  • Yellow - Moderate
  • Green - Cheap




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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