Warren Buffett Intrinsic Value Formula


Equation for calculate warren buffett intrinsic value is,


Warren Buffett Intrinsic Value =C * ( 1 - ( 1 / ( Discount / 100 + 1 )^year ) ) / ( Discount / 100 ) + CBV * ( Percentage Change + 1)^ year / ( Discount / 100 + 1 )^year

Where,


C= Cash taken out of Buisness
Percentage Change = Average Percent Change in book value per year / 100
CBV = Current Book Value