
THE ANALYSIS TOOL
Finvaley is an analysis and comparison tool in which buying and selling decisions for securities are made primarily with reference to the so-called "intrinsic value".
This interpretation was shaped primarily by the teachings and methods of Benjamin Graham and Warren Buffet. The investment approach is therefore associated with fundamental analysis. Our analysis method differs fundamentally from investment strategies that are based on technical analysis and momentum and thus usually only consider the past development of the market price.
Finvaley is particularly suitable for those investors who want an investment horizon of 5, 10 or more years. It also makes it easier to enter the stock market, since no prior knowledge is required for such an analysis.
Independently
Finvaley can provide its ratings completely independently of corporate interests. Neither funds nor other products have to be sold! Only factual key figures from the company's financial reports are used. This guarantees privileged access to high quality and objective analysis.
Transparent
Independent
You make your investment decisions completely independently. All information on finvaley.com Site or those obtained in electronic or non-electronic form through Stockanalyzer API are for informational purposes. Stockanalyzer GmbH is not an investment advisory company and in no way carries out investment or financing advisory activities.
a notice
Stockanalyzer GmbH, like Finvaley, is not an investment advisor and the analyzes are for general information purposes only. No specific recommendation is made as to any particular investment or whether to buy, sell or hold any of them. Please remember that any type of investment involves risk of loss and that you should do your own research before buying, selling or holding.
No guarantee can be given for the correctness of the information. Even if formulations and notices appear to call for action, the authors assume no responsibility for any purchases or sales made by the user as a result.
glossary
Our glossary contains explanations of the vocabulary used in our tool.
The definitions contained are intended to enable a clear understanding of the terms used.
The 3 Pillars of the Finvaley Analysis
overall rating
The overall rating at Finvaley consists of various key figures over several years from the balance sheet of a listed company. Key figures from the following areas are used for this:
- Valuation ratios such as P/E, KCV, PEG etc.
- liquidity
- assets
- liabilities
- P&L
- cash flow
- and many more
The key figures are not only compared individually, but also with values from companies in the same industry. The combination of key figure evaluation and industry comparison can ensure an even higher quality analysis.
$1 requirement
The goal is to select companies where every dollar of retained earnings is converted into at least a dollar of market value. This test checks whether the managers have managed to invest the capital sensibly and generate above-average returns.
margin of safety
There are several factors to consider when considering the margin of safety:
- A company must earn 5 times its interest to ensure a sufficiently high safety margin.
- The company's value must be greater than the company's debt
- The share price must be below the intrinsic company value
assets
Stocks
Designation for the products, services, goods and materials in stock, intended for the production process or for sale, which are included in the balance sheet under the items raw materials, auxiliary materials and supplies, work in progress, work in progress, finished products and goods as part of current assets.
requirements
Right to payment for a service rendered. In the balance sheet, receivables are generally to be shown and broken down as current assets (balance sheet classification).
Property, plant and equipment
Property, plant and equipment are tangible items on company books and balance sheets. Tangible assets include machinery, operating and office equipment, buildings used by the company (fixed assets) and materials used in production (current assets).
liquid funds
Cash includes funds that are available for immediate payment. These include cash, bank balances and cheques.
current assets
Current assets include: inventories, receivables and other assets, securities, checks, cash on hand, Bundesbank balances, balances at banks. Securities are only classified as current assets if they are intended for sale or as a short-term liquidity reserve; otherwise they are to be shown under fixed assets.
Intangible assets
Intangible asset of a company, such as location, customer base, company name, organization, management and workforce (goodwill); concessions; quotas; inventions; Various rights (patents, licenses, trademark and utility model rights, purchasing and delivery rights, copyrights, publishing rights, etc.).
Monetary and non-physical assets
liabilities
total assets
The final total of the left (assets) or right (liabilities) side of the balance sheet, which are equal in value.
Equity capital
Those funds raised by the owners of a company to finance it or left in the company as profit (self-financing).
liabilities
Liabilities are among the debts and – in contrast to provisions – are in principle certain in terms of reason and amount. Liabilities include bonds, liabilities to banks, advance payments from customers, trade payables (trade debts), bills of exchange, liabilities to affiliated companies and to companies in which an investment is held, other liabilities, especially from taxes and within the framework of social Security.
liabilities from goods and services
Long Term Debt
Short term debt
cost of sales
result
Interest charges
Interest or interest is the amount of money that a borrower pays for borrowed capital.
revenue
Proceeds from the sale, rental or leasing of typical products, goods and services in the ordinary course of business after deducting sales deductions and sales tax.
operating result
Earnings before taxes
Consolidated net income
Retained Earnings
gross profit
valuation
Price to Book Ratio (P/BV)
Price Cash Flow Ratio (KCV)
Ratio that shows the ratio of share price to cash flow per share.
calculation
Price of the share / book value per share
price-earnings ratio (P/E)
calculation
Price of the share / earnings per share
Price to Sales Ratio (P/S)
Ratio of a company's (estimated) revenue to market capitalization
calculation
Price of the share / sales per share
Price earnings to growth (PEG ratio)
The PEG indicates whether a company's P/E (price-earnings) is justified in comparison with the growth (growth) of the company. Companies with a PEG greater than 1 are considered overvalued, companies with a PEG less than 1 are considered undervalued.
calculation
P/E / expected long-term growth
market capitalization
Market capitalization is the share price multiplied by the number of listed shares in a public company
gross profit margin
The one specified in % gross margin states how much of the turnover remains after deduction of the production costs and thus gives an indication of how higher sales affect the company's profit situation.
stability
return on equity
Return on equity documents how much interest has been paid on the capital invested by the investor within an accounting period.
calculation
Profit / Equity * 100%
gearing
The level of indebtedness indicates the percentage of borrowed capital per unit of equity.
calculation
Debt / Equity * 100
distribution
dividend per share
The proportion of the balance sheet profit attributable to the individual share.
Calculation:
Dividend paid / number of shares
earnings per share
Earnings per share is a key business figure used to assess the earning power of a public limited company.
Dividend Yield (%)
The general distribution and the amount of the dividends can be determined by the companies themselves. High or low dividend yields say nothing about a company's profitability. For many private investors, the dividend yield serves as a substitute for the low to no interest on savings accounts, building savers, etc.
profitability
Earnings Growth (%)
Term for the percentage change in a company's earnings compared to a base year. The previous year is usually set as the base year.
calculation
Profit Current / Profit Last Year – 1 * 100
Revenue growth (%)
Designation for the percentage change in a company's sales compared to a base year. The previous year is usually set as the base year.
calculation
Sales current / sales previous year – 1 * 100
Operating income growth
Term for the percentage change in a company's operating income compared to a base year.
liquidity situation
Change in cash and cash equivalents
Cash includes funds that are available for immediate payment. These include cash, bank balances and cheques.
Cash flow from financing activities
The cash flow from financing activities is the difference between incoming and outgoing payments that occur in the financial area of a company.
Cash generated from operations
Cash flow in the ongoing operational process
Cash flow from investing activities
The cash flow from investing activities is the difference between incoming and outgoing payments that occur in the investment area of a company.
Research and Development
Research and Development is the systematic search for new knowledge using scientific methods in a planned form. While research is understood as the general acquisition of new knowledge, development deals with its first concrete application and practical implementation.