TrendX Financial Modelling (Stock)

2023年11月1日

TrendX Financial Modelling (Stock) indicator is a comprehensive tool that takes full advantage of both financial modelling and technical analysis to estimate the Intrinsic Value of any security. There are 2 main Fundamental methods for Intrinsic valuation: Discounted Cash Flow (DCF) and Basic Valuation.



USAGE

This Intrinsic Value Indicator is easy to use and customize. TrendX enables adjusting the parameters such as the type of basic valuation, market expected growth rate, the earnings multiple, and the margin of safety level according to your own assumptions and preferences. You can also apply different filters and alerts to get notified when a buy or sell signal is generated.


Valuation tool





DCF model will calculate the Present Value of all expected future cash flows, discounted at an appropriate rate, and compare it with the current market condition. In addition, Basic Valuation consists of 6 types of approaches depending on the industry of the target company. Combining these, the chart will show the potential target value from the current price.


Value classification



TrendX classifies 2 phases between Under-value and Fair-value, which are represented in Purple and grey, respectively.


Display potential targets



TrendX spot key target levels based on TrendX’s Valuation toolkit.


Optimal valued entry-exit



By combining the Breakout structure and divergences with the TrendX financial model, investors can optimize not only the entry-level at the Undervalued zone but also the exit-level at the potential “Bear” area.


Margin of safety



TrendX also incorporates the margin of safety principle, which is a key concept in value investing. The margin of safety is the secured zone between the intrinsic value and the market price, expressed as a percentage. The higher the margin of safety, the lower the risk of loss and the higher the potential return, which is customizable based on your preferences.



CONCLUSION

The Intrinsic Financial Model Indicator is very practical for any investor who wants to make informed and rational decisions based on Fundamental Analysis. It will help find undervalued gems in any market and avoid overpaying for overhyped stocks. Accordingly, it can also be helpful for traders to use alongside other forms of Technical Analysis.

Many traders fail to realize that indicators are not enough to achieve success, and they end up getting confused and frustrated by trying to find a perfect solution. TrendX aims to avoid this problem by providing clear and concise signals that can be easily followed



DISCLAIMER

The results achieved in the past are not all reliable sources of what will happen in the future. There are many factors and uncertainties that can affect the outcome of any endeavor, and no one can guarantee or predict with certainty what will occur.

If you notice significant changes in the Intrinsic Valuation over time, it is due to revisions in the company’s reported financials, changes in accounting standards, or corrections of previous errors.

Therefore, you should always exercise caution and judgment when making decisions based on past performance.