ValuationModels
Part I - Capital Asset Pricing Model
Assuming that the Systematic Risks to Returns on Investment as Linear, one can calculate the risk-return trade-off for assets and investment. This, by intuition, brings up the question, 'against what?' or, 'by how much/to what degree?'. This calls for a reference index. In our case, we shall use either one of BSE-SENSEX or NSE-NIFTY50 as the reference index. Then, one can fathom the degree by which the chosen security has deviated from the performance of the economy as a whole.
1. Select Security from the drop-down menu.
2. Select Reference Indices [^NSEI, ^BSESN]
3. Click on Submit to proceed.
Part II - Discounted Cash Flow
Assuming that the Systematic Risks to Returns on Investment as Linear, one can calculate the risk-return trade-off for assets and investment. This, by intuition, brings up the question, 'against what?' or, 'by how much/to what degree?'. This calls for a reference index. In our case, we shall use either one of BSE-SENSEX or NSE-NIFTY50 as the reference index. Then, one can fathom the degree by which the chosen security has deviated from the performance of the economy as a whole.
1. Select Security from the drop-down menu.
2. Define functions and derive Primary Outputs.
3. Use the Primary Outputs as Inputs in the Discounted Cash Flow Model
4. Calculate out the 14 fundamental ratios.
P.S. One may not need all 14 ratios. In such cases, they can choose exactly the ones they need without having to pay for redundant costs. Users pay per access/view which shall be deducted from their LedgrTokens.This we believe shall aid the User to pay only as much as they neeed to thereby saving their finances.
