Is a Stock Overvalued or Undervalued?
This application calculates the fair value of a stock, given the current market prices and several growth assumptions. Simply pick an industry, stock exchange, and then a company.
Maple then downloads the current market share price, EPS (for the trailing 12 months) and dividends (for the trailing 12 months) from Yahoo Finance (hence a connection to the web is needed). Given a series of growth assumptions, a fair value is then calculated. The valuation process is described at the bottom of this application, and is most appropriate for stable companies with a history of dividend payments.
The stock is undervalued if the fair value is greater than the current market price, and vice-versa.
This application comes with an Excel spreadsheet with a list of over 25000 companies across multiple industries and international exchanges, and their corresponding ticker symbols.
