I just read the great book 'Invested,' by Danielle and Phil Town. They write about numerous valuation formulas, including the famous Owner Earnings formula from Warren Buffett. Can anyone check the formula I've made and tell me if I'm doing it correctly? I'm using Apple stock (AAPL) as my example.
Item (numbers in millions):
net income = 63930
depreciation and amortization = 10906
change in accounts receivable = (6043)
change in accounts payable = 18697
income tax expenses = 10822
capital expenditures = (8702)
total = 89610
total in millions = 89610000000
total x 10 = 896100000000
shares outstanding = /16790000000
per share total = 5.33