biota to resume bull run, page-8

The calculation for the intrinsic value over 10 years is as follows

((current equity)*(1+Return on equity)^10)/((1+Return expected)^10)

So its just the total return on the equity over the 10 years divided by the return rate that you expect, which gives a value for the share. In this case I have used 6.6% as the return rate expected, which equals a risk return of 3.7% plus inflation of 2.7%.