Insightful analysis and commentary for the US and global equity investor
Contributors: Douglas McIntyre Jon C. Ogg

Previous Posts

Monday, October 09, 2006

Diamond Hill Valuation Calculator

From The Average Joe Investor

Surfing around the web looking at various mutual funds, I found the Diamond Hill website. These guys are focused on value investing, have a couple funds rated 5-stars by Morningstar, and sport a very low annual turnover rate. Poking around their website I happened on this valuation calculator. Of course, if you're looking to be a value-oriented investor you should probably keep some sort of Excel sheet or the like for doing valuations, but this seems like a nice quick little tool.

I would suggest, though, that you play around with their assumptions a little bit. Yahoo! (Nasdaq:YHOO), for instance, has some assumptions like a 35x 5-year P/E multiple and a 28% growth rate that could be a bit aggressive. Making these a little more sensible gets the valuation down well under today's market price - a result I happen to be in full agreement with.


Powered by Blogger