This year I was working on a Data Visualization Technology to aggregate, and visualize fundamental data using different valuation techniques. In this post I am sharing the fundamental models that were used as the initial building blocks for creating and implementing the framework in C#. I attempted to be as comprehensive as possible in the codes; covering the range of comps that Dr. Damodaran offers in the Updated Data section.
ADVFN Data Feeder (received positive feedback from major financial institutions)
I have to thank Dr. Aswath Damodaran from the Stern School of Business at New York University. His books and teachings notes helped to develop the algorithms for valuation scenarios. I also have to thank Professor George Athanassakos for providing the opportunity to work for the Ben Graham Centre of Value Investing and for introducing me to Mr. Warren Buffett.
Finally, I have to thank my student Christopher Gilpin for his outstanding programming and math skills.
nico
Reference to the Preface of the book Damodaran on Valuation, Second Edition:
“There is nothing so dangerous as the pursuit of a rational investment policy in an irrational world.” John Maynard Keynes
Lord Keynes was not alone in believing that the pursuit of ‘true value’ based upon financial fundamentals is a fruitless one in markets where prices often seem to have little to do with value. There have always been investors in financial markets who have argued that market prices are determined by the perceptions (and misperceptions) of buyers and sellers, and not by anything as prosaic as cashflows or earnings. I do not disagree with them that investor perceptions matter, but I do disagree with the notion that they are all the matter. It is a fundamental precept of this book that it is possible to estimate value from financial fundamentals, albeit with error, for most assets, and that the market price cannot deviate from this value, in the long term[1]. From the tulip bulb craze in Holland in the middle ages to the South Sea Bubble in England in the eighteen hundreds to the stock markets of the present, markets have shown the capacity to correct themselves, often at the expense of those who believed that the day of reckoning would never come.