To better align with the German (IDW S1) and Austrian (KFS BW1) valuation standards, Valutico has enhanced its platform with new data points and aligned core valuation methodologies.
Alignment of Different DCF Methods
Valutico brings consistency to three of the primary valuation methods on the Valutico platform: DCF (Dynamic WACC), Adjusted Present Value (APV), and Flow-to-Equity (FTE) by standardizing the periodic cost of capital used across these methods.
For more information on these methodologies, refer to this article.
Trading Volume for Public Peers
Valutico provides following trading metrics for publicly traded peers to help you assess the quality and reliability of market data. We have added the following data points:
Average 3-Month Daily Trading Volume
Latest Daily Trading Volume
Number of Shares Outstanding
High trading volume suggests a liquid market and more reliable beta and valuation multiples, a key principle for justifying your peer selection under IDW S1 and KFS BW1 standards.
Beta Statistics
To test the statistical significance and reliability of a peer company's beta, Valutico includes its R-squared (R²), T-statistic, and Standard Error.
R-squared (R²): Also known as the coefficient of determination, the R2 indicates the proportion of a stock's price movement that can be explained by movements in the overall market. A higher R² value indicates a more reliable beta.
T-statistic (T-Stat): It indicates the overall significance of the beta. A T-statistic greater than 2 at a 5% significance level, generally indicates that the beta is statistically significant.
Standard Error (SE): It measures the uncertainty around the estimated beta. A smaller value of SE indicates a more precise estimate of how the stock’s return moves with the market .