ATHENA: Fundamental Analysis
Fundamental Analysis is very different and it has lots of human judgment involved
unlike Quantitative Analysis. Machines can only assist in analyzing data and presenting
facts to support a decision for buy or sell. Fundamental Analysis consists of two
components:
- Quantitative analysis
- Qualitative analysis
ATHENA is fully capable of analyzing the quantitative aspects of a business and
presenting a companies’ financial aspects.
On Qualitative side it helps the user through unique
Meta Data Structure(MDS)
to discover the dependency chain for any event occurring within the scope of fundamental analysis.
Athena eases the effort of an analyst to perform valuation of a firm. It enables
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1. Absolute valuation
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i. Discount Cash flow model |
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ii. Dividend Discount model |
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iii. Free Cash Flow model |
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2. Relative valuation
| (ratio analysis w.r.t peer companies and sectorial
comparison) |
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i. Price multiples |
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ii. Enterprise multiples |
Athena can perform DuPont analysis and suggest the companies on the basis of financial
leverage, efficiency etc.
Scenario (or event) analysis & sensitivity analysis can be performed using Athena
Engine. It would help Investment managers to understand what could be the impact
of a particular event which is likely to occur or just happened. A wide range of
possible events will be covered, such as:
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-A change in political setup in particular
state, center, or foreign country |
| -Crude oil price |
| -Monetary and Fiscal policy change |
| -Sector specific govt. policy etc. |
To leverage the help of software we have designed intutive tool
to build a dependency Meta Data Structure with and without weighted average relationship.
Once we have this structure in place we can immediately get the list of companies
where we may have positive/negative impact for an event which is likely to happen.
Do you have some query or feedback?
See Also:
ATHENA: Fundamental Analysis Scenarios