[Sarge85]

[ QUOTE ]

Why don't you post the specifics of one of your calculations and I'll provide some commentary to see if it looks right to me

[/ QUOTE ]

Sure, (Though the formatting here makes it kind of hard to read)

Here are two “easy” companies – BUD and ADBE

Here is my break down for BUD:
Year Book Value Avg ROE EPS DIV % Retained New Book
Base $3.40 $2.77 $0.93 66% $5.24
Year 1 $5.24 39.97% $2.09 $0.70 66% $6.63
Year 2 $6.63 39.97% $2.65 $0.89 66% $8.39
Year 3 $8.39 39.97% $3.35 $1.13 66% $10.62
Year 4 $10.62 39.97% $4.24 $1.43 66% $13.44
Year 5 $13.44 39.97% $5.37 $1.80 66% $17.00
Year 6 $17.00 39.97% $6.80 $2.28 66% $21.52
Year 7 $21.52 39.97% $8.60 $2.89 66% $27.23
Year 8 $27.23 39.97% $10.89 $3.66 66% $34.46
Year 9 $34.46 39.97% $13.78 $4.63 66% $43.61
Year 10 $43.61 39.97% $17.43 $17.43



ADBE
Year Book Value Avg ROE EPS DIV % Retained New Book
Base $2.94 $0.91 $0.03 $3.82
Year 1 $3.82 26.55% $1.01 $0.03 $4.80
Year 2 $4.80 26.55% $1.28 $0.03 $6.05
Year 3 $6.05 26.55% $1.61 $0.03 $7.62
Year 4 $7.62 26.55% $2.02 $0.03 $9.62
Year 5 $9.62 26.55% $2.55 $0.03 $12.14
Year 6 $12.14 26.55% $3.22 $0.03 $15.34
Year 7 $15.34 26.55% $4.07 $0.03 $19.38
Year 8 $19.38 26.55% $5.15 $0.03 $24.50
Year 9 $24.50 26.55% $6.51 $0.03 $30.97
Year 10 $30.97 26.55% $8.22 $0.03

Notice on Adobe I just used a .03 dividend. That’s what they have had prior, and I can’t see increasing it. With the BUD dividend, I used what appears to be a “historical” figure, based on what they have been retaining on the EPS in the past.

Sarge[img]/images/graemlins/diamond.gif[/img]