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Implied Risk Premium Calculator

Enter level of the index = 1469
Enter current dividend yield = 1.68%
Enter expected growth rate in earnings for next 5 years
10.00%
for market =
Enter current long term bond rate = 6.50%
Enter risk premium = 5.50%
Enter expected growth rate in the long term = 6.50%

Intrinsic Value Estimate

1 2 3 4 5
Expected Dividends = $27.15 $29.86 $32.85 $36.13 $39.75
Expected Terminal Value = $769.63
Present Value = $24.24 $23.81 $23.38 $22.96 $459.26
Intrinsic Value of Index = $553.65

Implied Risk Premium

2.10%
Implied Risk Premium in current level of Index = (Go under Tools and choose Solver: See below)

1 2 3 4 5
Expected Dividends = $27.15 $29.86 $32.85 $36.13 $39.75 $42.33
Expected Terminal Value = $2,018.68
Present Value = $25.00 $25.32 $25.65 $25.98 $1,362.85
Intrinsic Value of Index = $1,464.80

This is a picture of the solver option, with the inputs that I used (Do not try to enter numbers in it).
Enter current level of index where you see 759.64.

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