Quick Guide

Find Companies

1. Start by clicking on the screener tool in the navigation bar. There, you can set your desired country, and use the filters to find companies with potential. We recommend starting off with the "High value" quick filter.
2. Click "Apply Filters" to see the results.
3. Alternatively, you can search for any publicly traded company using the search bar.

Estimate Fair Value

1. When you enter a company page, you should see an overview of the company including its profile, valuation metrics, financial health, and growth potential.
2. Click on the Valuation tab to see more valuation-related details.
3. Check the "Key Valuation Ratios" section for a high-level idea of the company's valuation. For example, a P/E ratio of 10 is considered undervalued, while a P/E ratio of 20 is considered overvalued.
4. Check the different valuation models in the "Share Price vs Fair Value" section to get a more detailed estimate of the company's fair value.

Check Quality and Financial Health

1. Click on the Finacials tab to see a visualization of the company's financials as well as their balance sheet.
2. In particular, pay attention to the company's debt levels as that could be a concern.
3. Return to the Overview tab and check the "Growth & Quality" section at the bottom to see information about a company's growth potential and quality.

Portfolio Management

1. On the Overview tab, you can add a company to a portfolio in the "Portfolio Management" section.
2. You might only have the "Watchlist" portfolio by default, but you can create more portfolios to organize your investments.
3. Go to the "Portfolios" page from the navigation bar to manage your portfolios and add companies to them.
4. Start adding companies to your portfolios with AI, importing, or by using the screener tool to find companies you like and adding them to your portfolio.

Key Valuation Ratios

These ratios compare a company's market price to fundamental metrics. Lower values generally indicate better value:

• P/E (Price to Earnings): Market cap ÷ net income. Good: <15 for mature companies, <25 for growth stocks.
• P/B (Price to Book): Market cap ÷ book value. Good: <3 generally, <1 indicates trading below asset value.
• P/S (Price to Sales): Market cap ÷ revenue. Good: <2 generally, useful if considering unprofitable companies.
• P/CF (Price to Cash Flow): Market cap ÷ free cash flow. Good: <15, another way to look at a company's valuation compared to P/E.

Other important metrics:

• PEG (Price/Earnings to Growth): P/E ratio ÷ growth rate. Good: <1 indicates undervalued growth.
• ROE (Return on Equity): Net income ÷ shareholder equity. Good: >15%, measures profitability efficiency.
• Debt to Equity: Total debt ÷ shareholder equity. Good: <1 generally, varies by industry.
• Dividend Yield: Annual dividend ÷ stock price. Good: 2-6%, higher can indicate value or risk.

Valuation Models

These models estimate a company's intrinsic value using different approaches. Compare results across models for best accuracy:

• DCF Free Cash Flow Model: Projects future free cash flows and discounts them to present value. Best for stable companies with predictable cash generation.
• DCF Earnings Model: Projects future earnings and discounts to present value. Works well for most profitable companies.
• DCF Yield Model: Values based on dividends and buybacks returned to shareholders. Best for mature companies with consistent shareholder returns.

Each model provides an estimate based on sustainable growth, which is how much a company can grow given its quality, current assets and reinvestment. There is also an estimate based on forecast growth, which is how much a company is expected to grow accordidng to guidance or analyst estimates. Each model uses a 4-year historical average for calculation, putting more weight on recent financials.