Valuatum Excel model Overview & Features

Valuatum Platform includes an Excel valuation model, which is the ultimate starting point of the research number data. Analysts modify their estimates in Excel and the data is transferred from there to Valuatum database and from there onwards to the investors. This happens with the help of Excel-formulas, a macro and a java program.

In practice analysts only press "Update to database" button whenever they want to transfer their new estimates to the database. After that the system takes care of everything else. Estimates go to investors in two minutes.

Features

1. Automatic balancing of assets and liablities  as forecasts are changed.

   As the user changes any estimates (growth, margins, investments, net working capital etc.), the assets and liabilities of course change and thus the original equilibrium between assets and liabilities disappears. The model however balances the situation automaticly: it either increases or decreases liabilities or increases or decreases cash. This mechanism and how to control it is explained in detail in this tutorial-document.

2. Automatic year-change function (only one click needed to change year).

   As the fiscal year results are reported and thus current year changes into history, the valuation models have typically to be changed somehow: new current year has to be estimated in detail and links have to be changed to output sheets.
   
   In Valuatum Excel model this procedure has been defined to consist 245 different actions: changing of links, copying formulas ahead, removing some very old information (quarterly data older than 3 years, yearly data older than 7 years) and things like that.
   
   However the user does not have to do these changes him-/herself. Every model includes a "YearChange" macro that does all the necessary actions when they are needed (as the company in question reports its fiscal year). The running of this macro takes about 10 seconds and all the analyst has to do is press a button.

3. Automatic procedures to updating models (all the models can be updated at once with few clicks).

   Each broker wants to update its Valuation models from time to time as they wants to for example add new figures or change the layout in output sheets. With Valuatum model as the base, this can be done by doing the changes in just one Excel file, called empty model, and then making a "conversion" with a Valuatum macro workbook.
   
   Conversion means that macro copies all the input-data from an old model to the new empty model. Then the macro saves the new workbook, goes to the next model and runs each one by one. This means that all the old models can be converted into new models automaticly and quickly (about one 20 seconds per model) and without humane errors. You may find more information concerning automatic conversion here .

4. Figures up to quarter and divisional levels in the past and near future.

5. Some alternative ways to estimate (e.g. Net sales and EBIT can be inputted in absolute figures or as percentages).

6. Includes DCF- and EVA-statements which are integrated to estimates and thus generate fair value based on current estimates. DCF- and EVA-statements produce identical fair value as the theory suggests.

7. Broker can integrate both its own output sheets and preliminary input sheets easily to Valuatum Excel Valuation Model.
   > More about Excel model customization

Technical information

Content of the model

• Sheets where figures (estimates etc.) are inputted
• Database-interface sheet
• Database macro

How figures are updated to and from database?

1. When the analyst wants to update the model, he/she clicks a button which runs a macro.
2. The macro makes a text file using the figures that can be found in the Database-interface sheet.
3. Then the macro starts outside of Excel a java process, which uses the text file created.
4. The java process inserts numbers to the database and in a few minutes the model is available for customers.

To get more details, please see: