Revealing The Secret Formula I Use to Value Stocks (Free Calculator)

Here's how I find the right P/E value for a stock. I disagree with looking at Industry P/E or Historical P/E. I think it should be calculated for each stock dependent on each situation.

Here's the P/E Calculator

10 Year Treasury Bond Table

[jonestan]

Thanks for this, great info! This seems like a better way to valuate companies as compared to the widely used DCF method, especially for growing tech stocks which usually do not have too much free cash flow floating around.

Regarding this, I have one question, as I feel that a 10-year forecast is too far and leads to greater uncertainty and inaccuracies. For this case, can I for example use a 5-year forecast instead?

By using the 5 Year Treasury or taking half of the 10 Year Treasury yields?
And will the formula in this case be ((1 + growth rate - bond yields) ^ 5) * 5?

[lebedevvitaliy]

Cool formula! so, it is applicable to indexes too?))

[armandozavala]

So I am trying to find some info that you gather from your P/E calculator and some of it I can't find or is different. Like the CRSR Forward P/E all I found was something on Yahoo finance and the forward P/E was 11.81 and yours is different on the calculator. Also, how do you calculate the percentages for growth rate?

[betsyh]

I have watched this 6 times and I am still confused....

[icantbelievegooglemademena]

You are a legend! Thank you for making this so easy to understand!