Price and value

A never-ending story. The purpose of the financial analysis of a listed company is to compare a price (the stock market price, which reflects the bid/ask at a given moment) and the estimation of a current and future intrinsic value. Depending on the company and the sector, Theia Recherche uses at least two valuation methods: DCF, stock market comparables, EVA, NAV, etc.

Our discussions with many investors have confirmed a long-held belief: there is no point in displaying a rating because investors make up their own minds, which is the core of their skill. On the other hand, a relevant way to help them in their investment decision is to propose a valuation based on a central scenario, which Theia Recherche considers the most likely, and two alternative scenarios allowing the impact of unforeseeable positive or negative elements to be measured.

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