What does this tool do?

This is a simple tool to discover the value of a company/stock you fancy. It is inspired by the ideas of well-renowned investors like Benjamin Graham, Warren Buffett & Charlie Munger.It uses 2 steps - a questionnaire to evaluate business quality, & a quantitative tool to compute business value.

The questionnaire captures various qualitative aspects of a business, its management, products & services, competition, financials etc. The quantitative tool calculates the Net Asset Value (NAV) of the business by re-stating the true value of assets & liabilities, and the Earnings Power Value (EPV) which is an estimate of adjusted income already earned by the company that is sustainable in perpetuity.

The tool is conservative as it does not indulge in the futile exercise of estimating future earnings. If the business quality as measured by the questionnaire is satisfactory, and the calculated NAV/EPV provides sufficient margin of safety compared to the current market price, the business is a potential investment.

A simple valuation report for the company/stockis generated after the qualitative & quantitative sections are completed. The report captures key information & data provided by the user and also calculated by the tool, besides a few comments as a guide for further action.

To use the tool, you need a basic understanding of the company you choose to value, its business, products/services, management, competition, environment, and financials.Of course, we will guide you through the process. You can improve your skills, as you use the tools, resources, forum &the game.

(Disclaimer : This tool doesn’t claim accuracy. The valuation report is not a recommendation to buy or sell stocks.)

Ready? Lets Go.

  • Step 1 - Choose the company
  • Step 2 - Qualitative Valuation
  • Step 3 - Quantitative Valuation
  • Step 4 - Valuation Report