SFC Valuation Model - Absolute

Financial statement analysis is the process of analyzing a company’s financial statements for decision-making purposes. External stakeholders use it to understand the overall health of an organization and to evaluate financial performance and business value. Internal constituents use it as a monitoring tool for managing the finances.

Most often, analysts will use three main techniques for analyzing a company’s financial statements.

First, horizontal analysis involves comparing historical data. Usually, the purpose of horizontal analysis is to detect growth trends across different time periods.

Second, vertical analysis compares items on a financial statement in relation to each other. For instance, an expense item could be expressed as a percentage of company sales.

Finally, ratio analysis, a central part of fundamental equity analysis, compares line-item data. Price-to-earnings (P/E) ratios, earnings per share, or dividend yield are examples of ratio analysis.

The indicator shows the most important metrics to help investors evaluate a stock. It saves a lot of time searching for metrics on different websites and writing them into different platforms for further analysis.

There are few valuation methods/steps
- Macroeconomics - analyse the current economic;
- Define how the sector is performing;
- Relative valuation method - compare few stocks and find the Outlier;
- Absolute valuation method historically- define how the stock performed in the past;
- Absolute valuation method - define how the stock is performed now and find the fair value;
- Technical analysis

How to use:
1. Once you have completed the initial evaluation steps, simply load the indicator.
2. Make your analysis.
3. Complete the checklist by writing down your thoughts.

版本注释:

- added two new metrics
- minor bug fixes

版本注释:

- added ex-dividend date, payment date and amount as tooltip for the section Dividends. Just hold the cursor on the section, if the dates are announced tooltip will appear.

版本注释:

- added monthly SP500 Earnings Yield and PE