Calculations Regarding Intrinsic Value. Please Take A Look.

Discussion in 'Options' started by XM911E3, Dec 3, 2007.

  1. XM911E3

    XM911E3

    Hi everybody, I am trying to figure out the calculations of a company's intrinsic value. I took CSCO as an example here. Please correct me if I am wrong. Thank you very much.

    I calculate the AVERAGE ANNUAL OPERATING CASHFLOW GROWTH RATE over the last 5 years.

    1) 2002: 6587 million
    2) 2007: 10,104 million
    3) Years: 5
    4) Shares outstanding: 6,070 million ( 6.07 billion )

    With the above information 1, 2, 3 & 4, I came up with Cashflow Growth Rate of 8.93%


    Question 1 - I would like to know if my calculations are correct that Cashflow Growth Rate is indeed 8.93%?


    Question 2 - After futher calculations, to keep question short & sharp, I came up with the company's intrinse value is estimated to be $13.36. Is CSCO intrinsic value about $13.36?
     
  2. 1. yes , it's 8.93
    2. Wrong forum to ask this question
     
  3. XM911E3

    XM911E3

    Thanks and sorry I didn't know that I am posting in the wrong forum.
     
  4. by "wrong" forum I meant that most of ppl here (options) don't give a sh*t about fundamentals ; your post will be unanswered