Our Modeling Approach
We have two types of models available on our website: 1) Basic Models, and 2) Premium Models. Our Basic models are available free of charge. Premium Models are available for $10, which is used to compensate our Analyst Contributor for building and maintaining the model, and to support/grow our website. Basic models include an Income Statement and Segment forecast for four quarters. Premium models include the Income Statement, Segment, Balance Sheet, and Cash Flow Statement forecasts for approximately five years, as well as an estimated target share valuation.
We calibrate our Basic and Premium Models to meet the consensus analyst estimates. This gives our model users a base-line starting point from which they can make adjustments using their own expectations for the company, macroeconomic conditions, expected changes in competitive pressure, and differences in valuation theories. Our Community Contributors may upload their versions of our models to share their points of view. Community Contributor posts are shared on the individual company model pages.
We calibrate our Basic and Premium Models to meet the consensus analyst estimates. This gives our model users a base-line starting point from which they can make adjustments using their own expectations for the company, macroeconomic conditions, expected changes in competitive pressure, and differences in valuation theories. Our Community Contributors may upload their versions of our models to share their points of view. Community Contributor posts are shared on the individual company model pages.
Our Typical Model Update Schedule
We break each quarter's earning cycle into four distinct stages:
- Stage 1 - End of Calendar Quarter: Our first stage is used to prepare our models for the upcoming earnings season. We update the Beta, Risk-Free Rate, Volatility, and Market Multiple for each of companies we cover.
- Stage 2 - A Few Days Before the Earnings Release: We make the final preparations before the press release including any updates the company may have pre-announced. We also do one final recalibration to meet consensus estimates, and analyze where consensus estimates stand relative to management's latest guidance.
- Stage 3 - The Day of the Earnings Release: We update our models following the press release to include the current quarter results and any new guidance given by management.
- Stage 4 - A Few Days After the Release: After all of the analysts have submitted their updated estimates we re-calibrate our model again to meet those estimates.