Stock Valuation Tools
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Screening Tools
Research Reports
Excel Addin Link
AFG 50 Portfolio
Global Equity Analysis
"Having been a user since almost day one, I have seen your research service continue to improve and it has become a more important part of my investment process. Having seen first hand the importance of the direction of Economic Margins, this factor is now part of my quantitative ranking model. One of the more important uses is the role it plays in questioning management/analyst projections - are they realistic based on previous results, can the company actually deliver with the present asset base, etc.
Your firm continues to refine and improve the tools. Fairly recent additions, which I especially like, are the industry reviews and monthly buy/sell list. Previously, I used Holt for many years, and was pleased with that service. Upon the creation of AFG, I found your approach more intuitively-friendly. Retrieving the information via the internet is also fast and convenient."
Meeting Hosted by:
Chris Austin
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Mike Burdi
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Mike Ghioldi
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Ekaterina Lukova
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Saul Marquez
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Maggie Resendes
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The Applied Finance Group - Institutional Global Equity Valuation Tools & Research
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Economic Margin: From Accounting to Economics to Valuation
The Applied Finance Group (AFG) helps investment advisors, institutional investment, consulting,corporate firms globally in accurately measuring corporate performance and identifying mispriced equities. AFG developed its proprietary framework, Economic Margin, to correct distortions created by traditional accounting-based analysis.
The Economic Margin Framework is more than just a performance metric, as it encompasses a valuation system that explicitly addresses the four main value drivers of enterprise value: profitability, competition, growth, and cost of capital. Unlike traditional valuation approaches that utilize highly sensitive perpetuity assumptions, AFG’s approach incorporates company specific competitive advantage periods which identify companies that may lose excess returns over time faster than their competitors.
Helping Investment Managers Make Better Investment DecisionsThrough Unique Corporate and Valuation Insights
AFG provides its clients a clear and robust set of applications to easily compare valuations and corporate performance over time, firms, industries and countries. By understanding differences between a stock’s intrinsic value and market price, management effectiveness, and earnings quality, the firm’s recommendations outperform the market regardless of a company’s sector, size, or growth/value orientation. AFG’s research covers over 25,000 companies around the globe. To learn more about our global research, click here.
AFG's Client Benefits Include:
Why Traditional Accounting-Based Metrics Fall Short
Earnings are a poor proxy for economic profitability because they do not accurately reflect the true cash flow of the firm.
Accounting ratios mix/confuse many different value drivers.
Accounting rules distort many aspects of economic reality.
Key questions when evaluating any investment:
The Economic Margin framework is more than just a performance metric, as it encompasses a valuation system that explicitly addresses the four main value drivers of enterprise value: profitability, competition, growth, and cost of capital. Unlike traditional valuation approaches that utilize highly sensitive
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