Can you clarify the factors used in the calculator for calculating the intrinsic value?
Eg. What growth rate to use – dividend, revenue or earnings? Where to get this figure?
You can estimate the historical CAGR of earnings/cashflow depending on the type of business. You’ll need financial calculator to derive the CAGR. Alternative, you can use rule of 72 to derive the growth rate.
For example if the earnings double within five years, the CAGR is around 15% (72/5).
Bear this in mind, historical growth doesn’t mean growth is likely to be repeated in the future. You will still need to study the business quadrant (i.e. risk and economic moat) and most importantly, ensure the growth remains intact.
For the EPS, do we use trailing twelve months or forecast EPS?
You can use trailing twelve months.
The intrinsic value calculation is based on discounting EPS based on historical growth rate, after taking into account the risk free rate, right? And how is the margin of safety derived at?
The calculation of Intrinsic value and Margin of safety can be found here: