| Not any technique outperformes the index! The irrationality of the stock exchange cannot be explained better then by the fact that innumerable techniques are applied daily by hundreds of thousands of people. However, not any model or technique succeeds in outperforming the index consistently over many years. |
| Not any investment consultant is always right! In order to translate efficiently the available business information to investors, investment consultants are indispensable. With success some of them are even praised as gods. After some time almost all fall from their pedestal.
Also investment funds, mutuals or portfolio managers cannot beat the index. With new funds, adapted time ranges, changing comparisons and definitions every fund or portfolio manager always presents his figures as advantageously as possible. There is however no fund or portfolio manager who -on a longer period of time and taking into consideration all costs-, has proven to be able to beat the index. Investment consultants and fund or portfolio managers simply do not like publishing any verifiable method showing why they are right. Most of them even do not bother to use any objective and verifiable method. |
| Can Fundamental Investment Analysis outperform the index? There are many forms of fundamental investment analysis. Some dangerously dependent and sales-oriented. Some lean on large and detailed knowledge of a company but final judgements remain always subjective. Making objective and verifiable predictions and comparisons happens to be a difficult and time-consuming job. With such a job however, if correctly executed, the index might be beaten. In the long run human ratio should overcome 'underbelly' feelings and 'irrationality'. |
| Objective and Verifiable Fundamental Investment Research! The following facts might be verified easily by yourself provided you buy at least the international version of F-Valuation Software. The results of a test run with all companies quoted on the Dutch stock exchange end April 2004, are presented in the file Analysis-Performance.htm.
There you will see that blind application of the results of the standard settings in F-Valuation Software between April 2004 and October 2005, generates already 31,93% return using just price changes. The index increase in that same period was 15.24%. So your additional return would have been 16.69%. This additional return runs up to 23,94% if you had simply followed the newspapers in that period. Attention please, this additional return resulting from price increases are calculated excluding all dividends.
Any costs of licencing therefeore are earned back very rapidly this way. |
| Only F-Valuation Software offers Objective and Verifiable Fundamental Stock Research! To collect stock exchange price data, there are plenty suppliers and software on the market.
However there is not any product available on the market that converts all required information into company valuations and compares these valuations with quoted prices. F-Valuation Software has solved this problem. All historical financial information as well as possible forecast figures are made available on the Internet by Finiconsult. This information is bought at trustworthy information suppliers. Based on the history of the stock exchange since 1900 the risk premium is determined automatically. This enables calculating automatically the WACC or discount rate. |
| How F-Valuation Software operates in detail! With forecast formulas future cash-flow can be determined. These results are corrected with probability filters if necessary. This way valuation outcomes by company are produced entirely automatically. These valuation outcomes, the underlying information and forecast assumptions can also be saved to be enhanced at a later stage. All valuation outcomes are collected and analysed in an Excel worksheet Analysis-Performance.htm. In this example the first three columns have been added to enable simple comparisons with the index.
For each company a large number of data is shown like price and different value calculations.
An average - to be set by the user- of those value calculations determines the value of a company.
In a separate column this company value is divided by its price.
Shares with the highest ratio value/price deserve a buy recommendation.
Shares with the lowest ratio deserve a sell recommendation. |
