Valuation Rainbow

Valuation Rainbow
© danny_peanuts

Stock value based on Book Value, Earnings, Dividends and Money Multiplier

SV = (BVPS + EPS + DPS) * MM

BVPS = Book Value Per Share
EPS = Earnings Per Share
DPS = Dividends Per Share
MM = Money Multiplier - Integer Number from 1,2,3, ... ,7

There are multiple ways of valuing the stock. Book value is traditionally used as the basic valuation since it's calculate the total asset value minus the liabilities of any company. There are valuation based on multiplication of book value, there are valuation based on multiplication of earnings, and valuation based on multiplication of dividends. Here I'm proposing valuation based on all of these combined. So this indicator is measuring stock value based on multiplication of book value plus earning plus dividend per share. Since the money supply could have an multiplication effect so does the stock value could have a multiplication effect. Also notes that some blue chips stock tends to value higher than startup stock due to money is not equally distributed. So for simplicity I will use simple integer number to represent this multiplication effect as rainbow color plots, thus it can be applied to any stock at any given countries. The higher the stock price on valuation bands the most expensive it is and the lower the price on valuation bands the cheaper it is.

릴리즈 노트:

Adding Color Gradient

릴리즈 노트:

Adding Gradient Color

릴리즈 노트:

Update Transparent Gradient

릴리즈 노트:

Update Chart

릴리즈 노트:

Update Gradient Color

릴리즈 노트:

Add Fractional Valuation

릴리즈 노트:

Add Valuation Multiplier x2, x6, x8
Add Valuation Divisor x0.2, x0.6, x0.8

릴리즈 노트:

Update Color Gradient

릴리즈 노트:

Increase Gradient Multiplier and Divisor

릴리즈 노트:

Update Rainbow Color

릴리즈 노트:

Update Line Transparency

릴리즈 노트:

Fix Incorrect Label

릴리즈 노트:

Add the Cashflow component to the equation. So it become the stock valuation based on Book Value, Earnings, Dividends, Cashflow and Money Multiplier

SV = (BVPS + EPS + DPS + CFPS) * MM

BVPS = Book Value Per Share (Asset - Liabilities)
EPS = Earnings Per Share
DPS = Dividends Per Share
CFPS = Free Cash Flow Per Share
MM = Money Multiplier

릴리즈 노트:

Renaming to accommodate other Scripts:
- Stock Value Rainbow: script to estimate stock value based on book value, earning, dividend, cashflow
- Index Value Rainbow: script to estimate index value based on fed balance sheet or base money supply
- Gold Value Rainbow: script to estimate gold value based on global base money supply