# Learning Roger Montgomery's intrinsic value method together



## viciam (17 March 2012)

It would be a great for learning the intrinsic value calculations...

If anyone is interested, we can use ArcelorMittal: stock ticker MT for this. 

For the 2011 ArcelorMittal annual report, please visit http://www.arcelormittal.com/corp/investors/financial-reports/annual-reports

Lets use required return as 10% and see what intrinsic value comes up, we can compare the end result.

This is how I got my value ( please use the annual report to get your own figures as opposed to using my ones below because using the ones I have will make this exercise pointless because I won't know if I've read the annual report correctly or not )

Equity/share = $36.32
EPS = $1.46
DPS = $0.75
Payout Ratio = 51%
Return on Equity = 4%
Required return = 10%
I used growth table ^1.8

Intrinsic value = $10.83


----------

