??? Calculating 1 year growth rates --not matching MSN.

[bucknut5]

Just read the book, and only #'s given are 5 and 1 year for EPS and sales growth rates.

Well I calculated the 5 year with Phil's calculator and it matched to what MSN has but the one year is where I am stuck.

I did Garmin.

On MSN key ratios growth ratios for EPS 1 yr is given as 19.5. I got like 66.53% and with sales I got an outlandish number as well.

---I input current, initial, and then I put 1 as number of years. I don't know what is wrong

any thoughts?

[Stockowner]

Just read the book

The book?

I got like 66.53% and with sales I got an outlandish number as well.

---I input current, initial, and then I put 1 as number of years. I don't know what is wrong

any thoughts?

What is wrong is that whatever shit people are trying to calculate with those calculators, most times it throws out close to random numbers. Trust your instinct and common sense and you'll get much further than rely on some calculator popping up strange numbers.

[tombrown1]

current-initial = x
x/initial is the 1 year growth rate.

[bucknut5]

Ok I used tombrowns formula and actually got the same numbers from the calc - 66% EPS and 79% sales. That just seems really high to me.

---I have not seen ANY examples throughout the entirety of the book where 1 year wasn't close to 5 and 10, usually it was DECLINING.

---I'm just curious and still pretty confused because Phil said in his book that those 1 year rates should MATCH the growth rates already calculated on MSN, and like I said the 5 year matched but not 1 year. The growth rates under key ratios where as he calls it the work is already done.



Is this the type of stuff that makes you frown at the book?? What about it isn't good overall I thought it was solid.

[tombrown1]

This is not the frowning stuff in the book. The book is a great intro to investing, but its technical analysis (3 tools) stink, and most of the value guys on this board dislike his valuation formula. Other than that, the book's great.

If you're confused about MSN's numbers, then check the numbers from the original annual reports and do your own math.