Stock Valuation Software
Calculate Stock Intrinsic Value

By Stock Research Pro • March 10th, 2009

Stock Research Pro announces the release of a stock valuation software package that automates the complex calculations associated with determining the intrinsic value of a stock. The package offers three modules for conducting valuation analysis and a scheduling module for tracking personal and financial events.

Product Features

Discounted Cash Flow, which is used to arrive at the intrinsic value of a stock based on earnings and free cash flow projections.

Net Current Asset Value Per Share, which offers investors insight into the liquidity and the financial health of a company.

Dividend Discount (Gordon Growth), which is used to determine the intrinsic value of a stock, based on future dividend projections.

A scheduling module, to track earnings announcements and other financial and personal events of interest.

Arriving at the Intrinsic Value of a Stock

While there are a number of industry-standard formulas for arriving at the intrinsic value of a stock, each attempts to estimate this value through the analysis of fundamental data. The investor may then compare that value to the market value to assess the “margin of safety” and worthiness for investment.

The three modules offered in the Stock Research Pro Valuation Software package include:

Discounted Cash Flow

• Discounted Cash Flow (DCF) is one of the primary tools used in stock research and valuation. DCF is a method for finding the present value of a stock by estimating the future cash flows of a company. The sum of these future cash flows is then discounted to a current value. The Stock Research Pro DCF software module leverages Free Cash Flow (FCF) for valuation. FCF is a measure of how much cash the business has generated after allowing for capital expenses (buildings, equipment, etc.). FCF can be used for expansion, to pay dividends, to reduce debt, or other business purposes.

Net Current Asset Value per Share

• The Net Current Asset Value per Share was introduced by the great value investor, Benjamin Graham, to assess the financial stability of a company and determine whether the stock is trading at a significant discount. Under the NCAVPS approach, the company’s total liabilities are subtracted from its current assets. That figure is then divided by the number of share outstanding. Graham believed that, as long as the company was financially sound, it presented a good investment opportunity if the stock price was no more than 67% of the NCAVPS. This module answers the questions of whether the company is financially sound (for this measure) and whether the stock is priced at a “bargain” level.

Dividend Discount Model

• The Dividend Discount Model seeks to assess the value of a company through the future dividends it will deliver to investors. The model arrives at a value by discounting the expected future dividends their present value. If that value is higher than the current price of a share, that stock is thought to be undervalued. This approach is most commonly used in valuing larger, more mature companies with a history of paying a regular dividend.

The Stock Research Pro Valuation Software is priced at just $14.99 and is offered on a “try and buy” basis. So please download it and try it out.

Click here to launch the Stock Valuation introduction video


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