# fin_valuation: Work the valuation of a company In umx: Structural Equation Modeling and Twin Modeling in R

 fin_valuation R Documentation

## Work the valuation of a company

### Description

`fin_valuation` uses the revenue, operating margin, expenses and PE to compute a market capitalization. Better to use a more powerful online site, like https://dcftool.com/analysis/AAPL or https://www.minuteup.co/?stock=RKLB.

### Usage

```fin_valuation(
revenue = 6e+06 * 30000,
opmargin = 0.08,
expenses = 0.2,
PE = 30,
symbol = "\$",
use = c("B", "M")
)
```

### Arguments

 `revenue` Revenue of the company `opmargin` Margin on operating revenue `expenses` Additional fixed costs `PE` of the company `symbol` Currency `use` reporting values in "B" (billion) or "M" (millions)

### Details

Revenue is multiplied by opmargin to get a gross profit. From this the proportion specified in `expenses` is subtracted and the resulting earnings turned into a price via the `PE`

• value

### References

• `fin_interest()`, `fin_NI()`, `fin_percent()`

Other Miscellaneous Functions: `deg2rad()`, `fin_NI()`, `fin_interest()`, `fin_percent()`, `loadings.MxModel()`, `rad2deg()`, `umxBrownie()`

### Examples

```fin_valuation(rev=7e9, opmargin=.1, PE=33)
# Market cap =  \$18,480,000,000
# (Based on PE= 33, operating Income of \$0.70 B, and net income =\$0.56B

```

umx documentation built on Sept. 21, 2022, 9:07 a.m.