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Review stock analysis

Learn how to intrepret the stock analysis

Use this interface map and the numbered sections below to familiarize yourself.

1. Assets-Based Valuation

The assets value represents the maximum value of the company based on different asset-based valuation models. It assumes that company is operating with no competitive advantage and no barriers to entry.

2. Earnings-Based Valuation

The earnings value of the company represents the value of the company based on it current earnings assuming no growth in earnings. To make it comparable against other valuation methods, it is broken down into:

  1. Assets Value is estimate of company's value operating with no competitive advantage and no barriers to entry
  2. Franchise Value includes competitive advantage such as consumer preferences, cost advantage, government licenses & patent protection and superior management.
3. Growth-Based Valuation

The growth value of the company represents the value of the company based on it current earnings and growth in earnings. To make it comparable against other valuation methods, it is broken down into:

  1. Assets Value is estimate of company's value operating with no competitive advantage and no barriers to entry
  2. Franchise Value includes competitive advantage such as consumer preferences, cost advantage, government licenses & patent protection and superior management
  3. Franchise Growth adds to the firm's instrinsic value because the firm can earn more than the cost of capital to support that growth.
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