Previous
Pros & Cons of Fair Value Models
Pros :
- They have a much deeper way of calculating based on years of past performance.
- Some of the mechanisms include macro-economic growth factors to calculate numbers.
- They are time-tested and commonly used.
- Relying on these numbers increases the chances of making the right trade.
Cons:
Past performance does not guarantee current / future performance.
Numbers get stale as data could be a few months to a few quarters old.
It does not take into account the most recent changes in a business scenario.
Data is a derivative of a derivative, which makes it quite complex.
Values from model to model may differ by a huge margin.
Often, the current market price trades much above these numbers, and some of the good stocks are always beyond reach.
TopStockResearch and Fair Value
1. Owing to the nature of the complexity in procuring these data and calculating fair value, analysts tend to stay away from it. TopStockResearch takes care of all the groundwork for analysts by presenting these numbers for them.
2. For Technical folks, we calculate
Overbought/Oversold stocks by Industry-standard parameter oscillators
RSI,
Stochastic,
Williams %R, etc.
3. All the models mentioned in this section are pre-calculated for you.
Depending on the industry, we show the fair value suitable for the stock in the fair value section.
4. On TopStockResearch.com we show a calculated fair value, which you can find on our
Custom Screener, and you can also use it to build your technical as well as fundamental strategies.
