Our Model Price Application (MPA) will save users an incredible amount of time and resources not only performing fundamental company analysis but also giving users a strong signal of probable future price action in a graphical interface.
The Model Price Application (MPA) illustrates two pieces of critical information to investors and traders about an individual company. The first is our calculation of Model Price or fair market value of the company, answering the question “What is the company worth?”
The second piece of information is our EBV (Economic Book Value) Lines, and is separate and apart from our calculation of Model Price, and either can confirm our Model Price calculation or not, but asks the question; “What is the market telling me about the future price action of the company?”
Model Price users can weight these two pieces of information independently or together to evaluate whether a company is a suitable investment.
Model Price (Dotted Purple Line)
Model Price is our calculation of fair market value (FMV) of the company based on our Model Price Theory (MPT) algorithm. We also include a history of our calculation, both short and long-term, on our charts for your analysis – see our dashed purple line on both our short (left) and long-term (right) charts.
EBV Lines (Parallel Lines)
EBV (Economic Book Value) Lines are our calculated multi-colored parallel lines that we derive, again by algorithm, from the company’s balance sheet. Again, we are using our Model Price Theory (MPT) to produce these EBV Lines. These fundamental (as opposed to Technical Analysis) EBV Lines give stocks mathematically calculated ‘support’ and ‘resistance’ price guidance to Model Price app users.
EBV ± Tab
Clicking on the EBV± Tab reveals our EBV calculations calculated on a daily basis.
Model Price app users will notice we have two columns of calculations for our EBV Lines appearing under our EBV ± tab. The first column gives our calculated EBV Line values as at the run date of our calculations (nightly, after stock trading ends) and gives daily relevant EBV values for traders and investors. The EBV second column gives a calculation of what the pro forma EBV value one year forward from the daily calculation. We use consensus median earnings estimates added to the company’s balance sheet less any projected dividends the company currently pays its shareholders. (Obviously we can only do this with the current fact set that is known. We cannot predict future management decisions like M&A activity, corporate reorganizations (write-down of assets) and amount of stock repurchased in any given quarter. However once these decisions and amounts are announced/known we endeavor, with the help of our data providers, to incorporate any changes in our EBV numbers.)
We overlay the company’s stock price with our calculated EBV Lines giving our Model Price users two independent pieces of information interacting together – a rarity in current finance theory and a strong signal of future stock price activity. If a company’s stock price trades up through our calculated EBV Line we call this a positive transit.
A positive transit occurs when the company’s stock price trades up through one of our calculated EBV Lines. A positive transit alerts users and signals that positive fundamental information or news has or will occur sometime in the future.
Conversely, a negative transit occurs when the company’s stock price trades down through one of our calculated EBV Lines. A negative transit alerts users and signals that negative fundamental information or news has or will occur sometime in the future.
Model Price users can save a further amount of time performing, what we call ‘Speed Charting.’
‘Speed Charting’ is an activity where MP users can click the dropdown arrow and select a pre-loaded index or sub-index. Companies in the index (sub-index) are organized in alphabetical order and the first company will automatically appear when an index (sub index) is selected. To quickly load companies of the selected index, again in alphabetical order, click on the >> to load the next company into the app.
Country Specific Ticker
We have two databases of stock securities: One for Canadian and the other for US stocks. When placing a ticker symbol for say General Electric – GE; the US database must be highlighted. And conversely if a user wanted to see BCE Inc. – ticker symbol BCE: the Canadian database must be selected. The app is preset with the US database selected and Agilent Technologies – ticker symbol “A” is loaded when the Model Price app is initiated.
Join the Model Price Community
Under our Model Price app you can see a comment section. Users can ask questions, point out transits and shout out to other members of the Model Price community. As you can see the comments section is very active and comments/questions are limited to this space and are not passed-on to your friends or other links on Facebook.