Equity Instruments: Newsletter – October 27,
2012
Where we
are in classÉ
Where you
should be in the projectÉ
Data NotesÉ
As we start on relative valuation, there are a number of different sources for multiples but the numbers you may get for your firm will not always match up because of differences in way the same multiple is defined by different sources. Here are a few:
Morningstar: http://www.morningstar.com
This is a good site. There is a premium section of the site, which costs $ 110 a year but is worth it if you want to screen data for specific variables. They also have a 14-day free trialÉ Take advantage of it.
Zacks: http://www.zacks.com
This is the mother lode for everything related to analyst forecasts (for what they are worth) and best of all, it is still free.
You can also get your hands on equity research reports on companies. Almost all of them are based upon multiples and comparables and they will give you insight into how analysts use multiples.
Miscellaneous FAQs
What
happens with my DCF valuation that I turned in by email?
If you turned in a DCF valuation, you should have got a response back from me with comments and in many cases your excel spreadsheet with comments in it.
What
do I do with these comments?
Read them and incorporate them, if you feel that they make sense. If you disagree, stay with your basic valuation. This is your valuation.
What
if I have not heard back from you?
Send your valuation again and make sure that you enter ÒMy perfect DCF valuationÓ in the subject area.