fin_valuation: Work the valuation of a company

In umx: Structural Equation Modeling and Twin Modeling in R

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.

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

• value

See Also

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

Other Miscellaneous Functions: deg2rad(), fin_JustifiedPE(), fin_NI(), fin_interest(), fin_percent(), fin_ticker(), 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 May 29, 2024, 5:40 a.m.