|
Valuatum Product Benefits: Model flexibility
Model from user's perspective compared to Excel-based
valuation models?
Traditionally over 90% of all financial analysis/valuation
models used by companies, investors and sell-side analysts
are Excel-spreadsheets, as it is fairly flexible tool
to form own sheets for background analysis. However, in
the client interface we rely on a java-based solution.
From the users' perspective this means increased flexibility
in forecasting.
What this flexibility means in practise can be illustrated
with the following example:
******************************************************************
Traditional Excel based valuation model is quite inflexible
as you can have formulas built only in one direction:
the most important estimates like net sales or ebit
can only be changes at one level amongst 8 possible.
On the contrary, Valuatum model allows changes at any
of the 8 levels. The both cases are illustrated below:
(As you change the estimates at sum levels in ValuModel
(sum of divisions in one quarter, sum of quarters in one
divison or the whole year/group level), then the change
is allocated to lower levels in the proportions of old
estimates.)
Our model is full of this kind of flexibility; different
forecasting paths. The user can forecast with the variables
which feel right for him-/herself or are suitable for
the particular situation or for the company in question
(dividends as per share figure or with dividend yield,
investments as absolute figure, relative to sales or via
fixed assets/sales-% etc.)
|
