Long Term Stock Ratings Overview

Long Term Stock Ratings Overview

Last Updated by WikiWealth

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Overview (definition)

WikiWeath's short term analysis focuses on three exclusively quantitative (mathematical) approaches to find the fair value of a target company. The fair value indicates whether you should buy, sell or hold your target company. If the stock price is below the fair value by a significant margin, then an investor should buy; if the opposite is true, then an investor should consider selling.

Three Approaches (click for additional information)
1. Discounted Cash Flow
2. Investing Multiples
3. Warren Buffett Valuation

Significance of Each Approach

WikiWealth determines the significance (weight) of each approach. The majority of value comes from the discounted cash flow approach, because the DCF allows for the most complex analysis. The investing multiples are indicators of value within the target's specific industry and among it's competitors, but this method does not aid in evaluating the target company versus the entire stock market. The Warren Buffett approach is experimental and its use and significance will grow over time. In time, the Warren Buffett approach will mimic the quantitative selection criteria used by Warren Buffett in his investment valuations.

Conclusion

These approaches rely almost exclusively on financial results, which lends itself to mathematical solutions. WikiWealth uses very conservative projected results, but we take a consistent approach to this process, so all analysis achieve the same consistent quantitative conclusions. Our analysis is transparent and free to change. Click on the analysis link and you will see every number, formula and assumption we used. If you disagree with any part of the analysis, feeling free to change the results and make your own forecast then post your analysis in the comments section for others to review and modify. We encourage innovation in the analysis process. Better analysis equals better conclusions.

Dictionary Definition

Short Definition

A form of analysis that focuses on the quantity and measurement of an issue. WikiWealth uses the quantitative analysis to focus on the numerical elements of stock research. WikiWealth believes there are two distinct elements of a proper company analysis. Those two elements are summarized in the qualitative and quantitative sections of the report.

Long Definition

A quantitative attribute is one that exists in a range of magnitudes, and can therefore be measured. Measurements of any particular quantitative property are expressed as a specific quantity, referred to as a unit, multiplied by a number. Examples of physical quantities are distance, mass, and time. Many attributes in the social sciences, including abilities and personality traits, are also studied as quantitative properties and principles. Whether numbers obtained through an experimental procedure are considered measurements is, on the one hand, largely a matter of how measurement is defined.

Expressed or expressible as a quantity.
Of, relating to, or susceptible of measurement.
Of or relating to number or quantity.
Of or relating to a metrical system based on the duration of syllables rather than on stress. Used especially of classical Greek and Latin verse.

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