HOLT® Important legal information

Important legal information

HOLT Valuation Methodology and Risks

The HOLT methodology does not assign ratings or a target price to a security. It is an analytical tool that involves use of a set of proprietary quantitative algorithms and warranted value calculations, collectively called the HOLT valuation model, that are consistently applied to all the companies included in its database. The HOLT valuation model is a discounted cash flow model. Third-party data (including consensus earnings estimates) are systematically translated into a number of default variables and incorporated into the algorithms available in the HOLT valuation model. The source financial statement, pricing, and earnings data provided by outside data vendors are subject to quality control and may also be adjusted to more closely measure the underlying economics of firm performance. These adjustments provide consistency when analyzing a single company across time, or analyzing multiple companies across industries or national borders.

The default scenario that is produced by the HOLT valuation model establishes a warranted price that represents the expected mean value for a security based upon empirically derived fade algorithms that forecast a firms future return on capital and growth rates over an extended period of time. As the third-party data are updated, the warranted price updates automatically. A company’s future achieved return on capital or growth rate may differ from HOLT default forecast. Additional information about the HOLT methodology is available upon request.

CFROI, CFROE, HOLT, HOLT Lens, HOLTfolio, “Clarity is Confidence” and “Powered by HOLT” are trademarks or registered trademarks of Credit Suisse Group AG or its affiliates in the United States and other countries.

© 2019 Credit Suisse Group AG and its subsidiaries and affiliates. All rights reserved.

FOR IMPORTANT DISCLOSURES on companies covered in Credit Suisse Global Markets Division research reports, please see www.credit-suisse.com/researchdisclosures. To obtain a copy of the most recent Credit Suisse research on any company mentioned please contact your sales representative or go to http://www.credit-suisse.com/researchandanalytics.

Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, expressed or implied is made regarding future performance. Backtested, hypothetical or simulated performance results have inherent limitations. Simulated results are achieved by the retroactive application of a backtested model itself designed with the benefit of hindsight. The backtesting of performance differs from the actual account performance because the investment strategy may be adjusted at any time, for any reason and can continue to be changed until desired or better performance results are achieved. Alternative modeling techniques or assumptions might produce significantly different results and prove to be more appropriate. Past hypothetical backtest results are neither an indicator nor a guarantee of future returns. Actual results will vary from the analysis.

Investment principal on securities can be eroded depending on sale price or market price. In addition, there are securities on which investment principal may be eroded due to changes in redemption amounts. Care is required when investing in such instruments. 

The information contained in this document does not constitute legal or tax advice.   Credit Suisse accepts no liability for losses arising from the use of this material.  This material does not purport to contain all of the information that an interested party may desire and, in fact, provides only a limited view of a particular market. 

European Market Abuse Regulation (Securities Traded on EU-Regulated Markets)

The European Market Abuse Regulation requires that Investment Recommendations are identified and Credit Suisse policy is to ensure any recommended or suggested investment strategy is classified accordingly. For the Purposes of MAR, HOLT Investment Recommendations will have the following meanings: 

Relative Buy : Applying the HOLT framework and valuation model, the stock shows upside potential on a relative basis.

Hold : Applying the HOLT framework and valuation model, the stock looks fairly valued on a relative basis.

Relative Sell : Applying the HOLT framework and valuation model, the stock shows downside potential on a relative basis. 

For date and time of production, dissemination and history of recommendation for the subject company(ies) featured in this material, disseminated within the past 12 months, please refer to this link: https://rave.credit-suisse.com/disclosures/view/content/holt.