The balance sheet multiples mean a lot
The way the market assigns earnings multiples reflects expected and ultimately realized company fortunes.
“Suppose there had been no Adam Smith. Ultimately the final stage would certainly have been the Objective Economics of Verne Atrill.”
University of Calgary
SAC, i.e. Strategic Analysis Corporation was founded in 1978 as an economic research institute by physicist and economist, Dr. Verne Atrill. Dr. Atrill questioned whether there were natural mathematical and physical laws that would govern how companies (and governments) survive, thrive, and die.
He sought his answer in the balance sheet, and spent 26 years developing what is today the Structural Valuation Analysis (SVA™) methodology. Focused on how prices are formed within the stock market, SVA represents a remarkable breakthrough in the economics field and has a proven track record of consistently identifying overvalued and undervalued stocks.
We fully entrust our friends and partners at Strategic Analysis Corporation (1994) with their SVA work for fundamental equity valuation. Our experience with the SVA studies over the years has been nothing short of formidable: the SVA approach has been the only equity valuation approach we came in contact with that is actually forward looking on a consistent basis. We find that of exceptional importance and implications.
SVA examines one of the most fundamental financial statements a firm produces – the balance sheet. Unlike traditional quantitative analysis, SVA combines the disciplines of accounting, mathematics, and economics to create a structure within which the true value of a stock can be measured.
The proprietary Structural Valuation charts are based not on price trends, but on historical fundamental data. They reveal the underlying value of an equity on a historical basis, letting you quickly screen dozens of stocks quickly and easily. The Structural Valuation charts are uniquely offered in our very own S-Trader desktop platform and the SVA Studies are in fact integrated in our platform’s Quant Script TM scripting language.
SVA provides uniquely valuable insight into a firm’s true value, and enables us to identify sound, long-term investments. This systematic approach to equity valuation has helped thousands of investors to consistently enhance stock timing and portfolio returns.