Hi xyvern, here is what I'm showing on my results for AAPL.
aapl.gif
You're right, by default the spreadsheet does report a MOS of about $7.72, however if you look at the numbers used to derive that figure you'll see that the Rule #1 PE is pretty conservative (5).
You might want to read through
this thread. Here is a quick excerpt:
Quote:
Whenever we see a valuation that seems to be way out of whack, our first suspect is always the data used to arrive at that calculation. With such a barrage of data, the spreadsheets can be a little overwhelming at times. For the sake of this tutorial, we won’t be concering ourselves too much with the area’s blurred out. For the most part, these values are not relevant to the most common problems. It’s comforting to know that the answer to the most common yet unavoidable problems are usually found in one of three places:
The Rule #1 Growth Rate - Cell H18
The Current EPS (TTM) - Cell H19
The Rule # PE - Cell H24
These three variables have the most impact on the resulting Margin of Safety Valuation. They are also the most prone to reporting strange or inaccurate values. This is because the spreadsheet is designed to always use the most conservative figure based on the raw data it has been given from the data site used.
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It will go into greater length about why the spreadsheet sometimes comes up with these seemingly "strange" MOS calculations.
Next to the default value I entered my own projections of Growth and PE, and the spreadsheet adjusted for these projections and calculated a MOS closer to the $60 range.
Hope this helps!