How do you calculate the value of a stock?

[TomK]

I've been meaning to do the free trial of FAST graphs. You guys really think it valuable? Whenever I see them used on SA I think to myself that maybe they can be a bit too misleading. But maybe I don't really understand how it works. In the samples, it seems compelling to conclude that a stock is undervalued when the black line is below the orange line, and overvalued when it is above. But isn't the orange line just drawn at an arbitrary 15 times earnings? That is, doesn't it just use a P/E of 15 to evaluate whether all stocks are over or under valued?

[EricL]

(12-09-2013, 11:53 AM)TomK Wrote: I've been meaning to do the free trial of FAST graphs. You guys really think it valuable? Whenever I see them used on SA I think to myself that maybe they can be a bit too misleading. But maybe I don't really understand how it works. In the samples, it seems compelling to conclude that a stock is undervalued when the black line is below the orange line, and overvalued when it is above. But isn't the orange line just drawn at an arbitrary 15 times earnings? That is, doesn't it just use a P/E of 15 to evaluate whether all stocks are over or under valued?

Yes, the crux of it is the historical PE, but you also have the historical dividend/growth, historical earnings info, earnings projections, estimated 5 year return, etc.

Its great seeing in a snapshot so much info. You can quickly see how volatile a company's earnings are and how the market has priced it over the different rolling periods.

If it was $100 a month I wouldn't be able to justify it, but I think it is well worth the $10 a month price tag.

[Robert_NL]

Isn't the basic subscription ($10) a month to basic? In the way that it actually doesn't provide any helpful information? The more expensive subscription has price/sales, cashflow and free cash flow overlay, forecasting.

[NilesMike]

I don't know how I stumbled into this but maybe it will help some.

http://www.advfn.com/exchanges/NYSE/MCD/financials

[cannew]

I long ago gave up all financial subscriptions. With whats available on the internet and the library, you already have access to most of the information needed.

Niles site is a good example and even $10/mo invested in a good DG stock will give you a nice return in 10 yrs

[TomK]

Another question about FAST Graphs: Does it give you easy access to the underlying data? For example, if I just wanted to look at quarterly EPS data for the last 10 years, is that available?

[EricL]

(12-10-2013, 03:34 PM)TomK Wrote: Another question about FAST Graphs: Does it give you easy access to the underlying data? For example, if I just wanted to look at quarterly EPS data for the last 10 years, is that available?

As far as I can tell it does not give you the quarterly EPS data. The graph shows the annual EPS and gives you the numbers but I don't see anywhere to look at quarterly data with the basic subscription.

For example, here is the fastgraph for QCOM.
   
   

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I apologize for the massive pictures, I don't know how to adjust their size.