iPhone App: Donkey Stocks
See how the Donkey Stocks App calculates a Apple stock price.
The following description shows an example of parameters for the Apple stock price. The Donkey Stocks App shows the relation between growth in earnings an stock price for Apple.
EPS Quarter autumn/2014: $1.42
The EPS value of $1.42 for the quarter autumn 2014 is taken from the news.
EPS Year: $5.68
The Donkey Stocks App takes 4 times the EPS Quarter of $1.42 and gets a EPS Year of $5.68.
Growth: 7.1 %
A growth rate of 7.1 % is choosen for the Apple example: It calculated stock price $107 from 1st of november 2014.
For this calculation the assumption is that the growth will keep going with a rate of 7.1% for 6 years.
EPS future: $8.57
The Donkey Stocks App calculates a forecast for the profit of $8.57.
Reference interest rate: 4.0%
A good value for USA is 4.0% which is also used for this calculation.
The Donkey Stocks Calculator calculates a Factor of 12.50 for multiplication of the future profit.
With the Donkey Stock App a stock price of $107 matches to 7.1% increase in earnings
It assumes that the future profit is the main parameter for a stock price. Other parameters may influence a stock price, but they are not taken into account.
iPhone App Donkey Stocks