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Implied Risk Premium Calculator: Sheet1

This document contains an implied risk premium calculator. It provides instructions to enter various inputs like the current index level, dividend yield, expected earnings growth, bond rate, and risk premium. Based on these inputs, it then calculates the expected dividend, expected terminal value, present value, intrinsic value of the index, and implied risk premium in the current index level. It also includes a screenshot of the solver tool with the inputs used.

Uploaded by

Sandeep Chowdhury
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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112 views2 pages

Implied Risk Premium Calculator: Sheet1

This document contains an implied risk premium calculator. It provides instructions to enter various inputs like the current index level, dividend yield, expected earnings growth, bond rate, and risk premium. Based on these inputs, it then calculates the expected dividend, expected terminal value, present value, intrinsic value of the index, and implied risk premium in the current index level. It also includes a screenshot of the solver tool with the inputs used.

Uploaded by

Sandeep Chowdhury
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
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Sheet1

Page 1
Implied Risk Premium Calculator
Enter level of the index = 970.43
Enter current dividend yield = 1.60% (if you want, you can add toc! "uy"ac! to thi nu#"er$
Enter ex%ected &rowth rate in earnin& for next ' year for #ar!et = (.00%
Enter current lon& ter# "ond rate = '.9)%
Enter ri! %re#iu# = '.'0%
Enter ex%ected &rowth rate in the lon& ter# = '.9)% (* a default, it i et e+ual to lon& ter# "ond rate$
1 ) 3 4 '
Ex%ected ,ividend = -16.76 -1(.10 -19.'' -)1.11 -)).(0
Ex%ected .er#inal /alue = -439.16
0reent /alue = -1'.04 -14.'( -14.13 -13.70 -)69.03
1ntrinic /alue of 1ndex = -3)6.49
1#%lied 2i! 0re#iu# in current level of 1ndex = 1.(6% (Go under Tools and choose Solver: See below)
1 ) 3 4 '
Ex%ected ,ividend = -16.76 -1(.10 -19.'' -)1.11 -)).(0
Ex%ected .er#inal /alue = -1,)97.9)
0reent /alue = -1'.'' -1'.'( -1'.61 -1'.6' -90(.03
1ntrinic /alue of 1ndex = -970.43
This is a picture of the solver option, with the inputs that I used (Do not try to enter numbers in it)
!nter current level of inde" where you see #$%&'
Sheet1
Page (
(if you want, you can add toc! "uy"ac! to thi nu#"er$
This is a picture of the solver option, with the inputs that I used (Do not try to enter numbers in it)

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