Table of Contents:
Understanding Fair Value
We use the Discounted Cash Flow model to estimate the fair value of the company. This model focuses on determining the value of the company at present based on the future free cash flow that the company can generate. Learn more about it here.
How to Assign Fair Value: A Step-by-Step Guide
- Click the stock's current fair value in the Fair Value column.
- A pop-up modal will appear showing the company’s valuation and the Community Narratives.
- Click the "Build Narrative" button under the "My Fair Value".
- Enter a narrative title between 10 and 140 characters. After that, input the fair value in the specified section. You can use the Stock Valuator to adjust other inputs and calculations to determine your fair value. You can include a narrative, but it is not mandatory. You can save the fair value by entering the title only.
- Once done, click the Save button.
Understanding Narratives
Narratives is a place to engage in thoughtful discussion with like-minded investors. Here, you can explore diverse perspectives, share insights, and make well-rounded investment decisions in an engaging, knowledge-driven environment.
Learn more about our Narratives Community.
How to Create a Narrative: A Step-by-Step Guide
- Click the stock's current fair value in the Fair Value column.
- A pop-up modal will appear showing the company’s valuation and the Community Narratives.
- Click the "Build Narrative" button under the "My Fair Value".
- Enter a compelling narrative title and content.
- Any narrative that is submitted on the platform will be reviewed by our team of internal equity analysts for the possibility of featuring.
- To learn more about the eligibility criteria, please refer here.
- Once done, click the Save button.
Monitoring Your Fair Values and Narratives
Keeping a close watch on both the fair value and the narratives of your stocks is essential for making informed decisions and effectively managing your portfolio. Monitoring fair value helps you evaluate whether your stock is currently undervalued or overvalued in relation to its market price.
Meanwhile, tracking narratives provides a qualitative layer that complements your quantitative analysis. By understanding the stories behind your investments, you can better assess their long-term potential and make more rounded decisions.
To monitor your holdings’ fair value and narratives, simply click on the fair value of each stock in your portfolio. This will display their fair value, your personalized narrative, and valuable insights shared by the broader community about the company.
Still have questions or need further assistance?
Don't hesitate to contact our support team through our support contact form or email us directly at support@simplywallst.com. We're here to ensure you have the best experience possible.