Princeton Review (Buffett Intrinsic Value Analysis)
Improve your investment analysis with by seeing the Princeton Review's Discounted Cash Flow analysis, Princeton Review's Comparable Multiple analysis, and Princeton Review's Weighted Average Cost of Capital (WACC) Analysis. Helpful Information for Princeton Review's AnalysisHow does this work? The Warren Buffett Intrinsic Value Analysis, developed exclusively by WikiWealth, tries to mimic the value investing approach used by Warren Buffett. Value Investing Importance? This method is unique and experimental, but extensive testing on over 3,200 companies confirms the results to be surprisingly accurate and consistent with more advanced approaches. |
Notes on the Buffett AnalysisWarren Buffett's formula was never published; however, from our research and Warren Buffett's hints over the years, this formula seems to be the most likely candidate. WikiWealth actually uses this formula in all our research reports in conjunction with Buffett's qualitative assessments of value. The numerator for this equation is found on the DCF valuation for Princeton Review. It's NOPAT + Depreciation - CapEx - Net Working Capital Change. The risk free rate is the US treasury rate, a standard risk free measurement. The Warren Buffett intrinsic valuation is a simplified version of Princeton Review's discounted cash flow analysis. Click on the link to see the analysis. See Princeton Review's equity valuation for the complete analysis. |