Complete Company Valuation – A Long Overdue

I have shared my framework of fundamental analysis (as below) with some people before.

fundamental-analysis-lc

 

If you ever study my excel thoroughly, you probably notice that I do not publish one part in my analysis. That is projection of future earnings and book value, which is part of Company Valuation.

projection-missing

The main reason I did not publish the projection is because I did not format the worksheet properly, and sometimes I just use calculator and paper to do projection. For reduce administrative overhead, I will attempt to incorporate my projection model for each company (if possible) in my analysis. This is a long term on-going project where I will gradually publish projection model for each company in my portfolio.

BTW, I hope that you can differentiate the difference between Company Valuation and Fair Value Estimation. Please check out the following illustrations.

valuation-vs-fair-value-estimate-1

valuation-vs-fair-value-estimate-2

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