The Stock Valuations toolset in Proquote Clearview offers two stock valuation methodologies widely used to enhance investment decisions. Each of these methodologies provides an indication of whether the stock is over or under valued. Detailed explanations for the results of each stock valuation are provided by the system.
The first methodology is considering stock multiples by looking at a stock's multiples relative to its competitors. The following multiples are given for consideration:
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P/E ratio |
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PEG ratio |
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P/CE ratio |
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P/FCF ratio% |
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P/BV ratio |
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P/S ratio |
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EV / EBIT ratio |
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EV / Net sales ratio |
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Dividend yield |
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The second methodology available to the user is Discounted Cash Flow (DCF) analysis. The purpose of DCF valuation is to determine the value of a company in terms of its future cash flows. Any cash flows used in such a valuation are adjusted for items that are not related to company's core businesses or those with no cash effect in order to make sure the flows reflect the actually generated cash as closely as possible.
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