Updates on the stock analysis template

Hi everyone,

Just published another version of the google sheets stock analysis template that address a few of the feedbacks we received so far.

There were a couple of cosmetic change to make it more user friendly and one major change in the DCF calculation itself. Now, instead of calculating the fair value based on only 5 years of FCF, we extended it to 10 years.

The reason why is because before, since we were only estimating 5 years, most of the times the FCF growth was changing from double digits to the terminal growth. For example, if year-5 the FCF growth was 15%, year 6 and forward would be suddenly 2.5% (terminal growth), which doesn’t make sense.

Therefore the change made was that now we slowly progress the growth after year 5 towards the terminal growth, which is more realistic.

Another small change was in the weight of the projections. Before, whenever a percentage was changed, it would affect only that specific year but now, as it can be seen in the picture on the right, the change affects the years after that as well.

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How to get this latest template?

1. If you don’t have an API Key yet, get yours FREE by filling the form in this page
2. Make a copy of this template spreadsheet to your own google drive.
   1. In the top menu, go to File > Make a Copy (remember to be signed in with your google account)
   2. Click Make a copy
3. Open the version you just copied and add your access key in the cell C6
4. Type the stock ticker you want to analyze in the cell C8 (Ex: AAPL, MSFT, TSLA…)
5. Enjoy!