Integration of Valuatum Platform with Existing Systems

This page provides an overview of the integration process, outlines different alternatives a broker can choose, estimates how much time the integration takes and what it costs.

How a stockbroker operates the system

A stockbroker has two ways to control the system:

Valuatum Admin
Excel Valuation Models

Valuatum Admin is a place where the broker maintains and updates all the basic information that the system needs: usernames, company and industry names, research reports, etc. Admin is a tool which is quite easy to use (see Admin instructions) and it does not require any special integration.

Main integration work with Excel models

The main integration work that we have to do is with the broker's Excel valuation models. To understand better what the integration may need, let us look at how the Excel models are used as a part of Valuatum Platform.

How the updates from Excel to Valuatum database work?

An Excel valuation model that is integrated to Valuatum Platform has at least the following parts:

Sheets where figures (estimates etc.) are inputted
Database-interface sheet
Database macro

The model works so that an analyst makes his/her estimates without caring about Valuatum system. One sheet in the worksheet is named as Database-interface and its job is to collect all the input parameters from the other sheets.

Update process:

1. When the analyst wants to update the model, he/she clicks a button which runs a macro.
2. The macro makes a text file using the figures that can be found in the Database-interface sheet.
3. Then the macro starts outside of Excel a java process, which uses the text file created.
4. The java process inserts numbers to the database and in a few minutes the model is available for customers.

Two possibilities in Excel integration

In order to use Excel valuation models as a part of the Valuatum Platform, the stockbroker has two options:

1. Add Database-interface sheet to the old models and modify them otherwise if needed (add the parameters that Valuatum Java Model requires).
2. Adopt Valuatum Excel Model (and integrate your current output sheets into the new model).

Why to choose option 2: Adopt Valuatum Excel Model?

Valuatum Excel Model has been developed and used among analysts about three years. It is well tested and it includes e.g. the following features:

1. Figures up to quarter and divisional levels in the past and near future.
2. Some alternative ways to estimate (e.g. Net sales and EBIT can be inputted in absolute figures or as percentages (net sales growth, ebit margin).
3. Includes DCF- and EVA-statements which are integrated to estimates and thus generate fair value based on current estimates. DCF- and EVA-statements produce identical fair value as the theory suggests.
   
4. Automatic balance sheet smoothing as forecasts are changed.
5. Automatic year-change function (only one click needed to change year).
6. Automatic procedures to updating models (all the models can be updated at once with few clicks).

When the broker adopts Valuatum Excel Model, it does not have to give up its old output sheets since they can be inserted to Valuatum Model.

Of course analysts have to learn using a new kind of model but we believe that Valuatum Excel Model offers good quality and at the end saves effort and time.

More information:
Role of Excel model in Valuatum Platform
Analyst Help main pages
Excel tutorials

Integration Time

Now you might think that the integration is time consuming and a big effort. At the simplest, the integration process...

1. ...takes only the time it takes to add the Database Interface sheet and link it with the rest of the model (option 1).
2. ...takes only the time that analyst input numbers to Valuatum Excel Models (option 2). Naturally this option requires also some training of analysts.

Once this is done the broker can start providing its research information to its customer through Valuatum Platform.

Other alternatives and their integration time are dependent on the modifications required and have to be evaluated case by case.

So the integration time needed is more dependent on the analysts' tight time schedules than on the integration work with your models. Our current customers have been able to introduce the platform to their own customers (institutional and retail investors) within one or two months from the buy-desicion. But as said: this is normally depending more on the schedules of the customer (analysts) than on the schedules of Valuatum. If the customer e.g. buys our cost-efficient raw data with consensus estimates and thus takes a very easy way to adapt new excel valuation models, then the total integration time might be as less as one week.

Integration Cost

As the time needed also the costs occurred are dependent on the case and modifications required. Generally this is however not very time consuming task and thus the cost to a broker is relatively small. Valuatum helps in any aspect needed with a charge of 100 EUR/hour/person. If needed we can also take care of the implementation with a fixed fee. And that fixed fee is normally only 1000 - 2000 EUR, depending of course on your situation e.g. with your current excel-sheets and on what kind of www.oayout wishes you have.

See more information about Excel-integration in Valuatum platform

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