Actual Real World Valuations stocks, several, actually, current, correct

svgleeson

Has anyone actually tried using all the equity models to value a stock?

Ive tried several models, but its so hard to make all the assumptions about high growth and low growth etc and holw long each period lasts. Closest i was able to come to a stocks actual current price was using the H Model - and i was still off by 8% of its current price. Id say its udnervalued haha but i dont think my model assumptions are correct.

Im just wondering if anyone has used the fromulas and how you come up with how long to use g rates for.

comp_sci_kid

Yeah in real life, relative valuation methods work much better. More Graham and Dodd type stuff...p/e, p/b, p/s. Stock value is based on a multiple of normalized earnings power. At least that's how we approach things at my firm...seems to work great.

Makes me wonder how much of this CFA material I'm EVER going to use...

Rasec

chicken bones and goats blood is also relatively effective