Related papers: Startup & Unicorn Growth Valuation
Benjamin Graham introduced a very simple formula for valuing a growth stock in 1962. How does it work and why? What is a sensible way to calculate this across many stocks and provide a scoring system to compare stocks amongst each other? We…
We first estimate the average growth of a company's annual income and its variance by using both real company data and a numerical model which we already introduced a couple of years ago. Investment strategies expecting for income growth is…
In this paper we first introduce two new financial products: stock loan and capped stock loan. Then we develop a pure variational inequality method to establish explicitly the values of these stock loans. Finally, we work out ranges of fair…
For both public and private firms, comparable companies' analysis is widely used as a method for company valuation. In particular, the method is of great value for valuation of private equity companies. The several approaches to the…
Research and innovation is important agenda for any company to remain competitive in the market. The relationship between innovation and revenue is a key metric for companies to decide on the amount to be invested for future research. Two…
Obtaining more accurate equity value estimates is the starting point for stock selection, value-based indexing in a noisy market, and beating benchmark indices through tactical style rotation. Unfortunately, discounted cash flow, method of…
As the number of publicly traded companies as well as the amount of their financial data grows rapidly, it is highly desired to have tracking, analysis, and eventually stock selections automated. There have been few works focusing on…
The study discusses the main features which affect the IT companies valuation on the example of social networks. The relevance of the chosen topic is due to the fact that people live in the information age now, and information technologies…
Startups often represent newly established business models associated with disruptive innovation and high scalability. They are commonly regarded as powerful engines for economic and social development. Meanwhile, startups are heavily…
We introduce TechRank, a recursive algorithm based on a bi-partite graph with weighted nodes. We develop TechRank to link companies and technologies based on the method of reflection. We allow the algorithm to incorporate exogenous…
Performing company valuations within the domain of biotechnology, pharmacy and medical technology is a challenging task, especially when considering the unique set of risks biotech start-ups face when entering new markets. Companies…
We uncover a new anomaly in asset pricing that is linked to the remuneration: the more a company spends on salaries and benefits per employee, the better its stock performs, on average. Moreover, the companies adopting similar remuneration…
Long term investment is one of the major investment strategies. However, calculating intrinsic value of some company and evaluating shares for long term investment is not easy, since analyst have to care about a large number of financial…
The purpose of this paper is to introduce a new growth adjusted price-earnings measure (GA-P/E) and assess its efficacy as measure of value and predictor of future stock returns. Taking inspiration from the interpretation of the traditional…
Business taxonomies are indispensable tools for investors to do equity research and make professional decisions. However, to identify the structure of industry sectors in an emerging market is challenging for two reasons. First, existing…
We consider the problem of evaluating the quality of startup companies. This can be quite challenging due to the rarity of successful startup companies and the complexity of factors which impact such success. In this work we collect data on…
We reconstruct the innovation dynamics of about two hundred thousand companies by following their patenting activity for about ten years. We define the technological portfolios of these companies as the set of the technological sectors…
We consider an investment process that includes a number of features, each of which can be active or inactive. Our goal is to attribute or decompose an achieved performance to each of these features, plus a baseline value. There are many…
Argumentation is a process of evaluating and comparing a set of arguments. A way to compare them consists in using a ranking-based semantics which rank-order arguments from the most to the least acceptable ones. Recently, a number of such…
It has been widely observed that capitalization-weighted indexes can be beaten by surprisingly simple, systematic investment strategies. Indeed, in the U.S. stock market, equal-weighted portfolios, random-weighted portfolios, and other…