iPhone App Donkey Stocks
See how the Donkey Stocks Calculator calculates a Procter&Gamble stock price. The following description shows an example of parameters for the Donkey Stocks App with which you get roughly the stock price for Procter&Gamble.
Quarter autumn 2014
EPS : $1.07
The EPS value of $1.07 for the quarter autumn 2014 is taken from the news.
EPS Year: $4.28
The Donkey Stocks Calculator takes 4 times the EPS Quarter of $1.07 and gets a EPS Year of $4.28.
Growth: 8.4 %
A growth rate of 8.4 % is choosen for the Procter&Gamble example in order to get the stock price from October 30, 2014.
For this calculation the assumption is that the growth will keep going on with a rate of 8.4 % for 6 years. Procter&Gamble is a very stable company and so this is a good example of the power of the donkey stocks calculator.
EPS future: $6.94
The Donkey Stocks App calculates a forecast for the profit of $6.94.
Reference Interest rate: 4.0 %
For the Reference Interest rate a value of 4.0% is choosen.
The Donkey Stocks App calculates a Factor of 12.50 for the multiplication of the future profit.
Stock Price: $86.80
The Donkey Stock Calculator calculates a stock price of $86.80 with the given parameters.
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