Calculate Stock Valuation with a TI-84 Calculator: A Step-by-Step Guide

Stocks are part of any successful asset allocation plan and give investors part ownership in a business. If you want to calculate stock valuation, the TI-84 is an ideal calculator for the purpose. You can calculate many different stock valuations on the TI-84, including the zero growth case, which implies that the stock has matured. The formula for zero growth is P = E/R, where P is the stock price, E is the stock earnings and R is the discount rate.

Step 1

Type the stock's earnings into the calculator. For example, enter $50 as "50."

Step 2

Press the division key.

Step 3

Type the discount rate into the calculator. For example, if the discount rate is 10 percent, type ".1." Current discount rates can be found on the Federal Reserve Bank's website (see Resource).

Step 4

Press the "Enter" key. The answer will appear on the screen.