Sunday, May 29, 2016 2:01:46 PM
Practical/Idealistic...objective/subjective...fair value/speculation
Book value/Residual value/Intrinsic value
http://www.wikihow.com/Calculate-Intrinsic-Value
Investing, by and large, is a process with unpredictable results. We strive to reduce this unpredictability for investors by offering tools that are based on sound fundamental analysis. We consciously minimize any subjectivity in the process so that our valuation results are consistent and comparable.
Valuation theory (x-fin.com)
Valuation is not an exact science. In fact, it is regarded by most valuation practitioners to be more art than science - in a sense that nobody really knows what will happen in the future. Real world does not allow for controlled experiments with real companies. There are just too many factors that could influence the company's performance - most of them of inherently unpredictable nature (such as innovation, changes in social behavior and government regulation - just to name a few).
There is such discipline as valuation, nonetheless. It introduces specific principles, which, if applied consistently to different companies allow determination at least of their relative value (whether one company is more valuable than the other and approximately by how much).
Even though the end results of the valuation process is a number or a range, it should be treated with a certain degree of healthy skepticism: the valuation process vastly oversimplifies the real world and totally omits factors that cannot be estimated or forecasted. In a way it is not that much different from trying to predict what future awaits a person. By the way, the younger the person or the company, the higher the degree of uncertainty. For a newly-born it is an absolute mystery.
Nonetheless, it is better to have at least some crude measuring instrument than no instrument at all.
...................................................
http://x-fin.com/
XME...Daily
Book value/Residual value/Intrinsic value
Book value/Residual value/Intrinsic value
http://www.wikihow.com/Calculate-Intrinsic-Value
Investing, by and large, is a process with unpredictable results. We strive to reduce this unpredictability for investors by offering tools that are based on sound fundamental analysis. We consciously minimize any subjectivity in the process so that our valuation results are consistent and comparable.
Valuation theory (x-fin.com)
Valuation is not an exact science. In fact, it is regarded by most valuation practitioners to be more art than science - in a sense that nobody really knows what will happen in the future. Real world does not allow for controlled experiments with real companies. There are just too many factors that could influence the company's performance - most of them of inherently unpredictable nature (such as innovation, changes in social behavior and government regulation - just to name a few).
There is such discipline as valuation, nonetheless. It introduces specific principles, which, if applied consistently to different companies allow determination at least of their relative value (whether one company is more valuable than the other and approximately by how much).
Even though the end results of the valuation process is a number or a range, it should be treated with a certain degree of healthy skepticism: the valuation process vastly oversimplifies the real world and totally omits factors that cannot be estimated or forecasted. In a way it is not that much different from trying to predict what future awaits a person. By the way, the younger the person or the company, the higher the degree of uncertainty. For a newly-born it is an absolute mystery.
Nonetheless, it is better to have at least some crude measuring instrument than no instrument at all.
...................................................
http://x-fin.com/
XME...Daily
Book value/Residual value/Intrinsic value
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