ValueGain Calculators

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SuperValue Calculator

ValueGain includes a number of inbuilt Fundamental Value calculators that allow you to calculate fair market prices for stocks using a variety of widely recognized Fundamental Analyses.

To open the Fundamental Value calculators selection page, click on the Value Calculator command in the Calculators tool button menu:

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First a stock selector dialog will open. Enter a symbol for a stock and click OK.

The Value Calculator work page will then open:

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There are six different calculators. They each share the common Value Calculator work page.

The work page consists of three components:

  • Stock Selector in the work page's function bar where the stock to be analyzed is selected
  • Calculators Interface on the left margin of the work page where the calculator and its parameters are selected and displayed
  • Calculator's Results display area on the right where the calculator results are displayed.

Stock Selection

Type in a valid stock symbol into the Stock Selector text entry box of the function bar, then select Go to populate the work page with data for that stock.

If you do not know the symbol, double left-mouse click on the Company Name text box to open the Symbol Search function.

Click Go to retrieve or update the fundamental data for the stock.

Once the fundamental data has been updated, the Value Calculator will display the new stock's Fair Value for all models using each model's default values.

The Fair Value will be displayed to the right of each calculator's name in the Calculator Selection List, see below.

Calculators Interface

Stock Selector

vgcalcs_criteriadisplay.gifSelect a stock to calculate fair value for using the standard ValueGain Stock Selector.

Once selected, click the Data-on-Demand Go button to retrieve both price and fundamental data for the stock. The calculator will then automatically perform the calculations using the default data and display the results in both the Information area as well as the Results Display areas.

Calculator Data Display

In the top section of the Calculators Interface, details of the default data used by the calculator for the selected stock are displayed.

Different groups of data fields are used by different calculators, and the manner in which the data is used will depend on the mathematical formula used by each expert.

The data fields used by the currently selected calculator are highlighted with a yellow background and blue outline.

Data Fields

The fields in the Information for Current Stock section are the common fields used by ValueGain in making the calculations for each Calculator in the Calculator Selection List.

Initially the fields are populated automatically by ValueGain.

For some fields this data is the most recent fundamental data for the stock (for example Current P/E Ratio), for others it is market data (for example the Risk Free Rate) while for others it is calculated by ValueGain (for example, Earning Growth Rate) or is setting defined specifically for the stock by analysts (for example Earnings Forecast Confidence).

Each field is used by at least one of the calculators. Some fields are used by more than one calculator in their calculations. The same fields are always displayed, in the same order.

When a calculator is selected in the Calculator Selection List, the fields that are used by the selected calculator are highlighted with a yellow background and blue outline.

All field parameters can be altered by users. Click the Calculate button to recalculate the values for the calculators that use the altered fields in their calculations.

To change the result for the currently selected calculator, the data fields that are highlighted with a yellow background and blue outline must be altered and the Calculate button clicked.

Changes to data fields will remain even if the currently selected calculator does not use the data field. If the data field is used by more than one calculator, the changes will be applied to all calculators that use it.

To return to the default amounts for all data fields, click the Data-on-Demand Go button for the current stock.

Note - When a new stock is selected and displayed, all user changes to the Data Fields will be replaced by the default data for the new stock.

Calculate

Results using the default values are automatically calculated and displayed when the calculator opens.

Users can change any of the data fields, see above.

The Calculate button will recalculate the results.

The results for the selected Calculator (highlighted with a yellow background) will only change if the user has made changes to the data fields highlighted with a yellow background and blue outline.

Earnings Forecast Period

The user can specify the number of years of data to calculate.

The default is 5 years.

Enter a new value in the Years To Forecast entry box and the results will be automatically recalculated for all the calculators.

Note - Unlike the other data fields, changes to the Earnings Forecast Period will not return to default when a new stock is selected and the DoD Go button clicked. In this way you can view a number of stocks, and different data field scenarios, for the same time period.

Calculator Selection List

The Calculator Selection List contains each of ValueGain's calculators, as well as the Fair Value (model value) price calculated for the current stock.

Users can select a calculator from the list to highlight the fields used in its calculation in the Information for Current Stock section. The fields that are used by the selected calculator are highlighted with a yellow background and blue outline.

Users can alter the text in the highlighted text boxes and click the Calculate button to recalculate the results.

The Fair Value price for that calculator will change.

Note - The Fair Value (model value) price for other calculators that also use the altered data field will also change. The Fair Value price for calculators that do not use the altered data field will remain the same.

Results Display Area

The results for the currently selected calculator and the current stock are displayed on the right. The Forecast Earning table is always displayed at the bottom of the display area, along with at least one of the graphs in the top part.

Users can decide whether to display one, two or all three of the graphs by selecting their display control icons on the function bar:

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Toggle the display of each on or off.

Forecast Earnings Table - Historical and Projected EPS and DPS

The table located at the bottom of the display area contains data for both the EPS and DPS graphs displayed above, for the number of years selected in the of Earnings Forecast Period text box.

Previous years are displayed in white, future years are displayed in blue.

For more information, go to the Forecast Earnings Table section in the Display Results topic.

Forecast Earnings Per Share  - Dividends Discount

A graph showing two bars for future years (up to the number of years selected in the of Earnings Forecast Period text box, see above) will display.

The blue bar indicates the EPS (Earnings Per Share) future value, i.e. the fair value calculated for the year indicated in the future.

The red bar indicates the present value, this is the future value displayed as a blue bar with an appropriate discount rate applied, i.e. the value to the investor today of the stock at its future fair value price.

For more information, go to the Earnings Per Share (EPS) Graph section in the Display Results topic.

Forecast Dividends Per Share  - Dividends Discount

This graph is similar to the previous future/discounted EPS display, except that it uses Dividends Per Share (DPS) instead of Earnings Per Share (EPS).

For more information, go to the Dividends Per Share (DPS) Graph section in the Display Results topic.

Price Chart with Value Zone Indicated

The Value Zone pane contains a price chart for the stock as well as a horizontal light blue shaded band indicating the range of current Fair Value prices generated using the calculators, referred to as the Value Zone.

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A green line representing the Average Fair Value prices for all calculators is also plotted in the Value Zone. The average amount and current date will display immediately above it.

When an Expert is selected from the Calculator Selection list on the left, a yellow line is plotted on the ValueZone graph showing the Fair Value of the currently selected expert's valuation and the expert's name and price level is displayed immediately above the line.

As with the other graphs, the display is controlled by the command buttons located in the function bar.

For more information, go to the Price Chart section in the Display Results topic.

Calculator List

The following calculators, each based on the fundamental analysis of different experts, are available in the SuperValue Calculator:

Select a calculator in the list above to go to a full description.

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