Warren Buffett Intrinsic Value Calculator

Posted by Dinesh on

This calculator calculates the intrinsic value using cash taken out of business($), current book value($), average percent change in book value per year(%), years, (discount rate) 10 year federal note values.

Warren Buffett Intrinsic Value Calculation

Formula:


Warren Buffett Intrinsic Value =C * ( 1 - ( 1 / ( Discount / 100 + 1 )^year ) ) / ( Discount / 100 ) + CBV * ( Percentage Change + 1)^ year / ( Discount / 100 + 1 )^year

Where,


C= Cash taken out of Buisness
Percentage Change = Average Percent Change in book value per year / 100
CBV = Current Book Value