You might have noticed that it is not always possible to replicate Valutico’s calculation in a spreadsheet. Why could this happen?
Valutico applies rounding to certain numbers displayed in the application’s front end, but the platform performs all calculations using full, unrounded values in the background. This approach ensures precision while providing users with easy-to-read figures.
Rounding on the front end
When viewing key financial metrics like the cost of capital, discount rates, or other valuation parameters within Valutico, you’ll notice that these values are shown as rounded numbers. This is done to improve clarity and make the information more user-friendly. However, it's important to remember that:
Rounding is only for display purposes: Valutico's calculations in the background use the full, unrounded numbers.
Replicating calculations exactly: Since Valutico does not round while performing the calculations, you may not be able to replicate the exact results in your spreadsheet if you're using the rounded figures shown on the front end.
Company Financial Data
Valutico sources company financial data through S&P Capital IQ. When viewing financial information, it’s presented in a summarized and rounded format. However, you can hover over the rounded numbers to see the full value behind each figure.
Conclusion
In Valutico, rounding is applied for display purposes to make figures more user-friendly, but precise calculations are always performed in the background with unrounded numbers. This ensures accuracy in our math, and clear easy-to-read figures in the front end. When performing your own calculations in parallel, remember that small differences might occur because of this rounding.