The SI Formula
Current Dividend Yield > Average Dividend Yield : Stock is undervalued
Current Dividend Yield < Average Dividend Yield : Stock is overvalued
The Warren Buffett Value Formula
The Most Value for the Least Price: Net Earnings + Dividends / Price-To-Book
If Value/Price is greater than 10 => Buy, will likely rise in price
If Value/Price is less than 2 => Short, will likely fall in price
Aswath Damodaran’s website http://pages.stern.nyu.edu/~adamodar/
