private ResultParameters CalculateIntermediateVariable(IntermediateVariable intermediateVariable)
{
ResultParameters resultParameter = new ResultParameters();
resultParameter.StickerPrice = (decimal)Financial.PV(intermediateVariable.FutureGrowthRate, 10, 0, -(double)intermediateVariable.FutureStockPrice);
resultParameter.MarginOfSafety = resultParameter.StickerPrice / 2.0m;
return(resultParameter);
}
public ResultParameters CalculateStickPrice(InputParameters inputParameter)
{
IntermediateVariable intermediateVariable = new IntermediateVariable();
intermediateVariable = CalculateIntermediateVariable(inputParameter);
ResultParameters resultParameters = CalculateIntermediateVariable(intermediateVariable);
return(resultParameters);
}
private IntermediateVariable CalculateIntermediateVariable(InputParameters inputParameter)
{
IntermediateVariable intermediateVariable = new IntermediateVariable();
//Future Growth Rate
double futureGrowthRate = Financial.Rate(inputParameter.IntervalYears, 0, (double)inputParameter.StartEarningPerShare, (double)inputParameter.EarningPerShaereTrailingTwelveMonths);
if (futureGrowthRate > 0.15 && futureGrowthRate <= 1)
{
intermediateVariable.FutureGrowthRate = 0.15;
}
else if (futureGrowthRate >= 0 && futureGrowthRate <= 0.15)
{
intermediateVariable.FutureGrowthRate = futureGrowthRate;
}
else
{
throw new ArgumentOutOfRangeException("FutureGrowthRate should be in range [0,1]");
}
//futurePE
double futurePE = intermediateVariable.FutureGrowthRate * 2;
intermediateVariable.FuturePE = futurePE;
//Future EPS
double pv;//if inputParameter.StartEarningPerShare=1.43$; pv=-1.43
if (inputParameter.EarningPerShaereTrailingTwelveMonths > 0)
{
pv = -(double)inputParameter.EarningPerShaereTrailingTwelveMonths;
}
else
{
pv = (double)inputParameter.EarningPerShaereTrailingTwelveMonths;
}
double futureEPS = Financial.FV(intermediateVariable.FutureGrowthRate, 10.0, 0.0, pv);
intermediateVariable.FutureEarningPerShare = (decimal)futureEPS;
//Future Stock Price
double futureStockPrice = futureEPS * futurePE * 100;
intermediateVariable.FutureStockPrice = (decimal)futureStockPrice;
return(intermediateVariable);
}
