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To follow up with actual examples:

Microsoft:

Invested Capital
10.64 Billions shares of equity
Current market price $26.90
0 debt.

10.64*26.90 = $286 Billion Dollars Capitalization

Intrinsic Value
If you <u>chose</u> to use these [only example]:
Diluted earnings per share $1.18
Interest rate of todays 10 yr T-Bond 4.45%

1.18/.0445 = $26.51/share

DrTarr
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