Sheet1

Enter level of the index = Enter current dividend yield = Enter expected growth rate in earnings for next 5 years for market = Enter current long term bond rate = Enter risk premium = Enter expected growth rate in the long term = 1 $27.85 2 $29.44 $25.26 3 $31.12 $24.74

1298 2.03% (if you want, you can add s 5.70% 3.95% 4.00% 3.95% (As a default, it is set equal 5 $34.77 $903.46 $640.02

Expected Dividends = Expected Terminal Value = Present Value = $25.80 Intrinsic Value of Index = $740.04

4 $32.89 $24.22

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Sheet1

you want, you can add stock buybacks to this number)

s a default, it is set equal to long term bond rate)

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