Warren Buffett Intrinsic Value Formula - Interest And Deposit Calculators

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Formula

Warren Buffet Intrinsic value formula is used to find the intrinsic value of a company or organization based on Warren Buffet's assumptions. According to him, estimated future earning is multiplied by a confidence margin ( 1 to 100). Then this earning is compared with total confidence. In general, it can be derived as the below formula.

Formula:

Warren Buffett Intrinsic Value =C * ( 1 - ( 1 / ( Discount / 100 + 1 )^year ) ) / ( Discount / 100 ) + CBV * ( Percentage Change + 1) ^year / ( Discount / 100 + 1 )^year

Where,
C= Cash taken out of Buisness
Percentage Change = Average Percent Change in book value per year / 100
CBV = Current Book Value