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ALEX
Can Value Price estimate change between earnings reports?
posted Feb 24 '18 by alex
Can Value Price estimate change between earnings reports?

The short answer is yes. There are many factors that used to compute Value and MOS prices and analysts estimates is one of them.

Stock2own is designed to collect and crack the numbers. It treats the same way numbers that are coming from the financial statements or from analysts estimates. And yes, we do use analysts estimates in order to compute value price. It means that if they change their opinion, value price valuations will reflect it. From a practical stand point we all know that stock prices are often driven not by historical numbers, but rather by expectations of future growth. You can read about future expectations in the earnings reports and conference calls AND in the analysts projected values, that is why it is important. If analysts changed their opinion, I think, it is better not to blame them but become extra cautious and perhaps re-evaluate your stocks and your strategies as well.

Stock2own has 3 "projection types" for the value price: pessimistic, moderate and optimistic. Each projection type uses historical numbers and future expectations in a different fashion. It allows stock2own users to pick which model to use for any given stock at any particular time. For instance, when market at the beginning of a bull stage, perhaps optimistic model will serve you the best. However, in a bear market, pessimistic model seems to be a better choice, because it is safer not to be over optimistic when prices are going down. In the S2O Stock Screener we show moderate projection, which is somewhere in between pessimistic and optimistic and fits better as an "all season" projection.

Note that you do not have to follow stock2own guidance and may use your own projections! Simply go to the stock analyzer page and in the "Value Price" section plug in your own future growth estimates. Stock2own will quickly compute value and MOS price for your own numbers. You can store it in your Watch List as an "Alert Price" and it will be shown in your watch lists, so it is really easy to track.

You can read more about price alerts here:
http://www.stock2own.com/About/Features/Investor/Price-Alerts

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