Fair
Valuation is about what a stock’s price SHOULD be
if the market were perfectly efficient. The forecast
model attempts to predict what the stock price actually
will be for a given time horizon.
The
VE Forecast model approaches
the analysis of stock prices from a different perspective.
Using the most advanced techniques from econometrics,
simulation and probability statistics, our Forecast
model is able to output target prices and probability
of gains/losses for different time horizons.
Short term, mid term, and long term momentum indicators,
price reversal models, and comparisons with industry
peers, overall sectors, and the market as a whole
are all incorporated into the forecast model.
While
the dynamic environment of the financial markets
precludes absolute forecast certainty, the ability
to create portfolios with ValuEngine and re-balance
them regularly provides a technique for implementation
of our Forecast Model that is completely responsive
to market, sector, industry, and individual company
changes.
