June 27, 2011
If you’re an investor, then it’s important to remember that poor investment decisions often times stem from poor valuations. Doing an accurate valuation of a corporation is frequently done incorrectly because the model is not used to it’s fullest potential. uValue, the new iPad app, allows anyone to receive a corporate valuation and serves as an educational tool for anyone looking to invest.
uValue helps you value businesses using conceptually rigorous, yet practical, widely-used tools. Valuing firms can be done using four different techniques: the ‘weighted average cost of capital’ (WACC, or ‘cost of capital’) approach, the ‘adjusted present value’ (APV) approach, the ‘dividend growth model’ (DGM), or real option valuation (ROV). uValue comes with three important features: pop-up boxes that define and explain every input or concept, a uValue Companion that is a mini-textbook on valuation, and links to a data set that give you industry data benchmarks. It presumes basic familiarity with financial statements, and with the WACC and APV models, you can also choose between ‘Detailed’ or ‘Simple’ versions.
Anyone should be able to do a good valuation wherever they are. Now that everyone has access to the self-contained, fully functional tools to do so, there is no excuse for a bad one!
uValue is a free app that is available on Apple’s App Store; currently, it’s only for the iPad. Let us know what you think of uValue – leave us a comment below!
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