Investment Ideas
Rational stock pickers search for new investment ideas based on their investment strategy. Valuatum Online Solution includes several ready-made screening lists and professional level tools to create new ones. All the screening tools can be used for all companies in the database or for subset such as industry, user's own portfolio etc.
Automatic Recommendations
The Automatic Recommendation tool generates a screening list based on company level upside/downside potentials. The upside/downside potential is calculated based on pricing multiples (eg. P/B), forward-looking consensus estimates (eg. ROE %) and current share price. Every recommendation is calculated with the latest information in the database.The valuation methods and values used in the calculation are all transparent and easy to validate.
The recommendations do not take into consideration the riskiness of the provided forecasts. The automatic recommendation tool users should consider if the consensus estimates are reliable and whether they are willing to invest in the recommended companies.
The Automatic Recommendations strategy can be back tested with the Tracking Strategy-tool, which creates a 'What-If' analysis using historical data from a customizable period. The tool creates recommendations using past data and calculates realized returns of the strategy using a pre-defined holding period.
The automatic recommendations are based on well known theory of fundamental valuation using current pricing multiples and forward-looking consensus estimates on future earnings performance.
Other Ranking Lists
Valuatum Online Solution generates automatically company ranking lists based on single or multpile parameters for screening purposes. Depending on the investment strategy the online investors may prefer companies with low P/E and P/B value or companies with high dividend yield, EPS growth or ROE % or companies with some certain weighed combination of different parameters. Valuatum Online Solution provides the most popular ranking lists by default. However an investor may also create own ranking lists if a different screening strategy is in use.
Company XY-Scatter
Visualized views are powerful tools when comparing companies. If an investor is interested in pricing multiple relations (eg. P/E vs. EPS Growth, P/B vs. ROE, EV/EBITDA, etc) a graph is often easier to translate than a number. In addition to the default scatter graphs a user can also make own graphs based on any parameter in the database or by applying own formulas just as with the ranking lists.
Changing Estimates
A user can change the future estimates by inserting different Net Sales, EBIT etc values for coming years. Changes in the estimates affect company's fair value. Based on the estimate changes all valuation data is updated and a user can see updated figures in discounted cash flow (DCF), economic value added (EVA) and pricing-multiple parameters. Thus a user may test the valuation in different future scenarios using any of the valuation models provided.
Guided Video Tour (time stamp 3:18)
Reverse Valuation
Valuatum Online Solution offers also a tool to reverse valuation. This tool shows how the EBIT % should develop in the up-coming 10 years to justify the current share price.