Fundamental Analysis
Valuation Model FAQ
What is the purpose of the 4 tabs?
Your custom built Google Sheet provided in the Signal Sigma PRO Subscription contains at least 4 tabs: Valuation_Build, Valuation_Model, Query_Y, Query_Q. Start by selecting the stock you want to analyze in cell A1 of Valuation_Model. The table will then auto-populate with financial data.
Valuation_Model contains both the Yearly 3 statement model (Income Statement, Balance Sheet, Cashflow Statement), as well as the Quarterly model, just below (starting on row 132). You can customize this spreadsheet by modifying any cell with an orange background. All of the other cells are locked. The orange cells on column A contain a drop-down list so you can select which option you prefer in terms of projecting the respective field. Usually, the first 3 options are generated using Machine Learning regression techniques.
Valuation_Build contains the Discounted Cashflow Analysis. You need to input a value for WACC (Weighted Average Cost of Capital) and an EBITDA multiple in order to generate a price target.
The Query sheets are useful for accessing raw financial statement data for supported companies. You can simply copy and paste this info into your own models, or download the page as an excel or csv file
You may have noticed how the model works with companies that have at least 3 years of financial history and breaks if you attempt to model companies with less than that. The main reason we designed the models this way is because machine learning algorithms need data in order to create predictions.
In order to model companies with less history, you need to create your own DCF Model by duplicating our template and manually copy/pasting values from the Query sheets.
What is the relationship between the Valuation Model and a Stock Report?
The numbers that you model in the Valuation_Build sheet as well as the yearly part of the Valuation_Model sheet will determine what you get to see in the lower half of a Stock Report. There is a slight 5 minutes delay between updating the info on the Google Sheet and what is available in a report so please be patient if you don’t immediately see updates.