Free Cash Flow Equity Research
The flagship product of Value-Kwik is an innovative free cash flow valuation called QuickVal which objectively determines the intrinsic value of listed companies. The target audience of QuickVal is the buy-side. At the present moment our client base consists of the full gambit of institutional fund managers, from intraday, statistical arbitrage hedge funds, small cap unit trust funds as well as value and growth funds.
Essentially, QuickVal is a fundamental, closed, systemised, quantitative valuation program that calculates the “key value drivers” for an entity based on an extrapolation of historical trends. The intrinsic value of an entity is determined through free cash flow principles by applying the projected “key value drivers” to a discounted free cash flow valuation framework. The inherent strengths of the programme are:
- The application of free cash flow principles takes cognisance of important factors in the valuation process which are often ignored in “rule of thumb” techniques, i.e. cost of capital considerations, capital resources, residual fade rates.
- All companies are valued in a consistent and systematic manner
- Subjective bias is removed from the valuation process as only historical financial information is captured
- The competitive advantage afforded by the nature of QuickVal is that the program allows for extensive share coverage with considerably less resources than is conventional. With the least resources we have one of the largest stock universes in the country
The source code has been extensively tested on approximately 2500 company valuations since the late nineties and this has resulted in QuickVal becoming a dependable company valuation tool.