how do you do your fundamental analysis and get fair value?

This is a discussion on how do you do your fundamental analysis and get fair value? within the Economic & Fundamental Analysis forums, part of the Methods category; Originally Posted by pirx Hi Forexian, may I ask, which valuation model do you use when evaluating the "fair value" ...

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Old Jun 3, 2007, 5:22pm   #11
 
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Originally Posted by pirx View Post
Hi Forexian,

may I ask, which valuation model do you use when evaluating the "fair value" for a stock?

I usually use the built-in evaluation models in AAII Stock Investor Pro, or I use the web site I provided in my previous post.
analysts often use more than one model on a single stock to calculate the fair value. Dividend and Free Cashflow discount are quite difficult to use, mainly due the large amount of input variables. The simplest models to apply are the price multiple models i.e. the P/E models, P/BV ... P/Sales etc. Google these terms.. u'll find alot of info there...
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Old Jun 23, 2007, 4:08pm   #12
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the companies that make up the S & P 500 are for the most part multi's and their foreign sales when translated back into $ point in only one direction
It's a trade based on the weakness of the dollar.There are some exceptions of currencies that have not gained in value against the dollar,but generally if you look at the major currencies you should see what I mean.
Hi Chump.

What about countries that don't have a weak currency. What about ftse stock?

Thanks.
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Old Jul 12, 2007, 1:56pm   #13
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Old Jul 12, 2007, 11:39pm   #14
 
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Hi Chump.

What about countries that don't have a weak currency. What about ftse stock?

Thanks.
Because oil is priced in $ollars and £1=$2.03 means oil costs a lot less. Advantage as cheap fuel.

50% of UK companies based in US.

60-70% of UK trade with Europe so £ v € relationship more important.

For the UK not a big factor.

Main downside is UK companies who earn US $. Their earnings will be less.

Apply selection. Hanson may well fall I guess.
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