Hi All,
So, ready to get shot down pretty quickly here. Finished reading buffetology recently and started going about trying to create spreadsheet to follow valuation technique explained, largely based on historic ROE%.
Now I know obviously these are fraught with danger, previous performance and maintaing historic ROE etc etc but wanted to see how stocks stands when analysed this way anyway. I found a seemly comprehensive spreadsheet for download ( which provides two future value estimates) which I have then added my own interpretation of the equations as a third check.
Anyway, the exact figures i've put in on the example of RSW may not be 100% correct but mainly i want to know if the maths stacks up and im using the correct figures?
I:e on my version is BVPS the correct measurement to determine shareholders equity per share? And to calulate proposed share price this should be multiplied by historic or industry P/BV ratio?
Anyway thought it interesting and keen to get peoples thoughts ,also i've used RSW as an example, might not have been the best given its current woes.