Understanding Market Expectations
Is the Market Optimistic or Pessimistic?
HOLT platform users can quickly assess whether the market is fairly pricing in a company’s prospects for value creation. Essentially, users can decide if the market is optimistic or pessimistic about a company’s prospects based on future returns implied by the stock price.
Equally important, HOLT objectively forecasts the most likely path of future returns. Based on the company’s performance, and using empirical research on how thousands of companies with similar characteristics have performed in the past, HOLT’s default model assigns each company a warranted valuation.
Users can compare HOLT's warranted valuation, as well as their own assumptions about the company, to the expectations of the market and gauge whether the stock is overvalued or undervalued.