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Since 1995, AFG has set the standard for independent institutional equity research and investment research tools by helping investors make better buy, hold, and sell decisions. AFG’s process begins with properly measuring corporate performance and ends with understanding market expectations embedded in stock prices.
Our understanding of valuation and corporate performance has led us to grow our client base to over 170 institutional investment, consulting, and corporate firms globally. |
LATEST ISSUE AVAILABLE HERE
The AFG Difference:
AFG systematically analyses over 4000 companies through their:
- Balance Sheets
- Income Statements
- Analyst Forecasts
- and Cost of Capital
This process allows AFG to translate simple accounting numbers into a robust economic performance measure to evaluate companies based on their Management Quality, Intrinsic Value, and Earnings quality.
AFG’s approach also incorporates company specific competitive advantage periods which identify companies that may lose excess returns over time faster than their competitors. |
Linking Performance to Value
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Successful companies measure results, make decisions and set strategy with the goal of creating value. A company’s performance measures must serve as a proxy for its market value creation. While important, S-T Earnings alone are a poor indicator of a company’s value, due to what they do not measure. |
Economic Margin is a more complete performance measure for companies to use to guide performance and motivate employees. Executives consider Cash Flow, Investment, Competition & Risk when setting strategy. The above charts show that investors do the same.
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"AFG's Value Expectations model neatly incorporates the key measures of firm performance into a rigorous valuation framework. A powerful tool for identifying potentially mispriced stocks."
Richard G. Sloan, PH.D
University of Michigan Professor of Accounting |
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"AFG provides our organization with the tools we need to make investment decisions based on a sound valuation discipline. We are a small investment management firm and use AFG as our “outsourced” valuation research team. I am continually struck by how much time the AFG staff has been willing to invest in our relationship. Their products and support have been invaluable to our stock selection success. "
Robert Bingham, CFA, President and CIO
SKY Investment Group
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“Finding a great, well managed company is only the first step in the research process. Understanding the performance expectations built into its market price is another...AFG helps us do both”
Doug Sandler, CFA Chief Equity Strategist
Wachovia Securities, LLC |
About Us | Contact Us | AFG is an Independent Equity Research Provider | In©2008 The Applied Finance Group
Economic Margin™ and Economic Margin Framework™ are trademarks of The Applied Finance Group, LTD.
Other trademarks belong to their respective owners.
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