The DCF Valuation module provides the user with powerful tools to determine the target price of a given stock using the Discounted Cash Flow valuation model.

This module easily replaces Excel spreadsheets and “in-house” models and offers various advantages. One of the main advantages is to supply the user with all of the historical data.

Some of the characteristics of Economatica's DCF module are:

 

Historic data
The module instantly displays the historic values of each of the components that are required to project free cash flow (sales, ebitda, capex, etc) as well as the WACC (beta, capital structure, etc.)

 

Sector Averages
In addition to providing the company's historic values, the module also offers the user key sector averages such as Ebitda margin, Capex/Depreciation, and others.

Benchmarking
Sector averages of US companies are calculated and made available to be used as benchmarks for projecting components such as the beta and the capital structure (this feature is available to clients subscribing to the US database).

Country Risk
The user may input desired values for the projection of Risk Free and Country Risk or choose the system to calculate these values based on the debt securities (updated daily).

Presentation
The historic data and the values projected by the analyst are displayed through an interface of well-polished spreadsheets and graphs that take the user through a revealing visual of the complete process.

Upside Alert
After the user inputs projections for various companies, the system can perform daily screenings to find stocks whose upside has reached a specified level. Daily changes in upside are triggered by changes in the stock price, risk free rate, etc.