Valuation Worksheets - Problems 1, 2, and 3

There are two stock valuation worksheets. Please work through the first three problems on each. The first worksheet contains phony companies. However, the second worksheet uses real companies and real numbers. While you are working through the real companies, analyze your thoughts and feelings about whether or not you are attracted to these companies as prudent, long-term investments. Remember that there are literally thousands of companies. What types of companies are you attracted to? Only you can decide. "That is what makes horse races!" is what the Germans say! (I know. It does not translate well into English but in my humble opinion, it encapsulates the entire process of determining what investments are right for you! Everyone is different and so everyone will not be attracted to the same types of investments. Everyone will not be betting on the same horse in the race!)

As you work through the stock valuation worksheets, it would be helpful to have the chapter 6 formula sheet handy. Why not print a copy before you start?

Stock Valuation Worksheet 1

Commentary - Answer key Don't peek at the answers for problems 4 through 7!

Stock Valuation Worksheet 2

Answer key Don't peek at the answers for problems 4 through 7!

As promised, it is time to forge ahead and learn the sacred secrets of the dividend discount models!