Frequent Asked Questions
- Why doesn't the FCF valuation tool work with financial stocks (Insurance and Bank Companies)?
The financial statements of Insurance and Bank Companies are significantly different as well as the valuation process. I've decided to focus on non-financial companies also the DFCF Valuation Model is not the optimum model for financial companies. Economic Valuation Model is more appropriate. The PE valuation and Book Valuation methods are more appropriate for Insurance and Bank Companies. The "Source Data for Model" and Historical Value Drivers" sheets will have lots of missing data since it is set-up for FCF valuation; however, I've included enough imported data to support the PE Valuation and Book Valuation models.
- Importing of Financial Statement data?
The data is imported from publicly available websites. Generally, the data is accurate but it should be verified. Occasionally, the data is stale and does not reflect the most recent quarter or two. This is rare but seems more frequent with the more obscure small cap stocks. In this case, manually update "Source Data for Model" sheet with the appropriate values; however, this will result in you over-riding formulas resulting in you needing to go back to the original file for your next stock valuaiton.
This occurs when the SMF Add-in is not working correctly. Unselect the add-in and save the file. Then go back into the model and reselect the SMF Add-in.
- What are the Minimum System Requirements?
Requires any version of Windows Microsoft Excel from 97-2007. At this time the model does not support Mac operating system.
- What is the source for the imported data?
www.yahoo.com and www.ADVFN.com
- Does the model support foriegn stock markets?
Currently, the source data for the model comes from www.advfn.com which only provides financial data for stocks traded on United States stock exchanges.
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