Valuation Matrix
Valuation Matrix triangulates a stock’s fair value across five independent methods, plus a reverse DCF insight. Each method captures a different dimension of value; the weighted verdict answers "what is this worth today". Reverse DCF flips the question to "what growth rate is the market already pricing in" — so you see both the fair value and the expectations embedded in the quote.
Creator
Driven
Created time
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Last update
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Version
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Usage
Built-in skill
How it works
DCF (30%)
Five years of projected free cash flows discounted at the company's WACC, plus a terminal value at 2.5% perpetuity growth. Bear / base / bull scenarios are computed simultaneously, so the output is a range anchored in cash-flow economics rather than a single point estimate.
P/E Multiple (20%)
Forward P/E using analyst consensus EPS, applied against bear / base / bull sector multiple ranges. Ranges are calibrated by market — the US baseline, HK discount, and A-share premium in Consumer / Healthcare all differ meaningfully — and auto-expand when the stock's actual multiple sits outside the reference range.
EV/EBITDA (20%)
Capital-structure-neutral valuation of the operating business. Most informative when comparing companies with different debt loads or in capital-intensive sectors where earnings are distorted by depreciation policy — it strips leverage and accounting differences out of the comparison.
FCF Yield (15%)
Cash-flow yield benchmarked against sector-specific reference ranges. Grounds the valuation in cash actually delivered to shareholders rather than reported earnings — the number that matters for dividends, buybacks, and deleveraging capacity, and the hardest one to manufacture accounting-wise.
Analyst Consensus (15%)
Sell-side 12-month price-target triangulation — low / median / high. A check against the community of analysts covering the name, intentionally weighted light so it informs rather than drives the verdict.
Reverse DCF — market expectations
Solves backwards from today's market cap for the implied FCF growth