Discretionary Earnings Base

The Pratt's Stats™ Discretionary Earnings Base worksheet calculates the discretionary earnings value used in the Indicated Value worksheet.

Historic or Adjusted

The Historic or Adjusted setting on the Assumptions sheet determines if the calculations start from the historic or adjusted financial statements.

Adjusting the Base

To adjust the calculated base:

Click on the Adjust Base button on the Desktop Toolbar. An adjustments row will appear on the worksheet.

Enter a label for the adjustments row in the white input cell in the labels column.

Enter adjustments for the financial periods.

To hide the adjustments and remove them from the calculations, click on the Adjust Base button again.

Weighted Average

Enter a weight for each of the financial periods. The worksheet will update the weighted average calculated in the cell labeled "Ongoing Discretionary Earnings Base".

Selected Ongoing Base

The rounded value in the cell labeled "SELECTED ONGOING DISCRETIONARY EARNINGS BASE" is used in the Indicated Value worksheet. You can edit this value by overwriting its blue text cell.