Public companies are lawfully required to submit annual business reports. These annual reports are publically available and provide details about the financial health of a public firm. Using the fair value calculator, it is easy to confirm financial key figures from these annual reports and make them ready enough so that it would be easy even for the beginners and thus, with the Fair Value Calculator they can easily find good and inexpensive stocks. For this purpose, even free manuals and premium tools with advanced features are available.
What makes a good stock?
The annual reports of the stock corporations are of great importance for every purchase decision of fund managers and securities analysts. They have significant key figures for growth, profit, profitability, debt, and much more. With the help of these key figures, an approximate true value of the share can be determined.
Experts then buy those stocks that are apparently less inexpensive based on the analysis. The investors use to pay commissions and surcharges to the bank for this work.
With the tools that are provided with the calculator, you can easily find out inexpensive stocks yourself and building an effective stock portfolio. In this manner, you don’t have to pay heavy fees and have your investments independently and transparently under control.
An ideal company continues to make a consistently higher profit. Earnings per share and sales growth are also available to view in the annual report so that one can know how much growth a company can grow year after year.
One can add key figures into the manual calculator and receive the fair share price of the share which must be more than the current market price to show off an opportunity to buy.
Moreover, the manual calculators have extended free calculators that make use of some other key figures to calibrate the fair share price. This is even more easy and precise with the premium tools.
The premium tools:
For the manual calculator, you already need the key financial figures from the firm’s annual report. However, when using a premium tool, key figures can automatically be read from the annual reports and then can be prepared for the user in specially developed artificial intelligence. Furthermore, a premium member is provided with unique information on the stock subpages.
The actual fair price of the share (Fair Value):
The premium too automatically calculates the fair price (fair value) of the share and then this is presented in the premium area for each share on the bottom. The fair value is calibrated with the help of a specifically developed algorithm (fair value price), which makes use of about 10 key figures to find out the true value of the share including its growth, profit, profitability, book value, and even the relative strength. Moreover, the fair value is calculated and shown with the help of generally recognized discounted cash flow or simply called DCF fair value.