Countercyclical Docs
  • Welcome to Countercyclical
  • Guides
    • Terminology
    • Platforms
    • Integrations
      • Airbyte
      • Google Drive
      • Google Sheets
      • Zapier
  • Fundamentals
    • Workspaces
    • Navigation
      • Command Palette
      • Exploration & Recents
      • List vs. Grid View
      • Quick Actions
    • Search
      • Filters
      • Companies
        • Charts
      • Economic Data
      • Model Syncing
    • Investments
      • Tabs
        • Overview
        • Analysis
        • Valuations
      • Actions
      • Comments
      • Invitations and Sharing
        • Share
      • Quick Versioning
    • Valuations
      • Sensitivity Analysis
      • Assumptions
    • Memos
      • Sources
    • Teams
    • Pipelines
    • Profile
    • Settings
      • Account
        • General
          • Connected Accounts
            • Google Sheets
            • Google Drive
        • Preferences
        • Notifications
        • Sessions
        • Account Security
        • Plans
      • Workspace
        • General
        • Advanced
          • Access
          • Identity
          • Appearance
          • Usage
          • Developers
        • Permissions
        • Integrations
        • Workspace Security
          • SAML SSO
          • Audit Logs
        • About
  • Use Cases
    • For Analysts
    • For Research Teams
    • For Organizations
    • For Education
  • Developers
    • Getting Started
    • Authentication
    • Rate Limiting
    • Versioning
    • Endpoints
      • Investments
      • Valuations
      • Memos
      • Teams
      • Assumptions
      • Pipelines
    • Webhooks
  • Extras
    • Security
    • Billing
    • Imports
      • Formatting Guide for Imports
    • Exports
      • Export User Data
    • Enrichment Data
    • Troubleshooting
  • Links
    • Website
    • Dashboard
    • Request a Demo
    • LinkedIn
    • Twitter / X
    • Dribbble
Powered by GitBook
On this page
  • What are Valuations?
  • Valuations on Countercyclical
  • Valuation Methods
  • Coming Soon: Inference
  • Sensitivity Analysis on Each Scenario
  • Collaborative Features
  • Valuation Templates
  1. Fundamentals

Valuations

Decode hidden value with our Valuations feature - purpose-built for amplifying your strategic investment insights.

PreviousQuick VersioningNextSensitivity Analysis

Last updated 9 months ago

What are Valuations?

Valuations serve as the cornerstone of sound investment strategies for value investors. They involve a rigorous analysis of various financial metrics, market dynamics, industry trends, and qualitative factors to determine the true worth of a company's equity.

At Countercyclical, we offer a suite of valuation methodologies tailored to meet the needs and preferences of our users.

Valuations on Countercyclical

Valuation Methods

Countercyclical offers 3 different valuation methods out of the box:

  • Discount Cash Flow (Default)

  • Comparable Company

  • Precedent Transactions

Users can create any number of valuations with different valuation methods as they work on an Investment.

Discounted Cash Flow (DCF)

A discounted cash flow technique estimates the present value of a company's future cash flows, incorporating factors such as revenue growth, operating expenses, capital expenditures, and terminal value. DCF analysis enables investors to assess the intrinsic value of a company based on its projected cash flow generation potential.

Comparable Company (CC)

CCA involves benchmarking a company's financial metrics, such as earnings, revenue, and multiples, against those of its peers within the same industry. By identifying comparable companies with similar business models and market characteristics, investors can derive insights into the relative valuation of the target company.

Precedent Transactions

The Precedent transactions approach involves evaluating the valuation multiples paid in previous mergers and acquisitions within the same industry or sector. By analyzing transaction data, including deal size, valuation metrics, and strategic rationale, investors can gain insights into the potential valuation of a target company in a merger or acquisition scenario.

Coming Soon: Inference

Inference is an optional feature we offer on Enterprise Plans that gives financial analysts the ability to add line items to the valuation based on industry and the description provided when creating the valuation.

Sensitivity Analysis on Each Scenario

Valuation inherently involves uncertainty, and our platform equips users with tools for conducting sensitivity testing to evaluate the impact of various assumptions and market conditions on valuation outcomes. This enables investors to make more informed decisions in the face of uncertainty.

Collaborative Features

For teams of financial analysts collaborating on valuation projects, our platform offers collaborative features where members can seamlessly exchange feedback and collaborate on the development of models in real time. We believe this can help to foster teamwork and enhances the quality and efficiency of valuation analysis.

Valuation Templates

Valuation templates offer reusable functionality where users can either create personal, team-based, or workspace-level templates to be used based on the scenarios being measured on Countercyclical.


The images contained in this post are used for informational purposes only and does not constitute investment advice. Our valuation projects and research are based on publicly available information and our own analysis, which may not be comprehensive. You should conduct your own independent research and analysis before making any investment decisions. We are not responsible for any loss or damage resulting from your reliance on this information. Always seek the advice of a qualified financial advisor with any questions you may have regarding investments.

Valuations on Countercyclical always reside within on the platform.

Each Valuation created on Countercyclical comes with a baked in.

Have any questions or feedback? Feel free to reach out at

Investments
Sensitivity Analysis
support@countercyclical.io
Investments - Valuations - Generated Valuation