It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain't so.
We think it is important to keep this quote in mind when we set about to develop financial models. Financial models are useful tools with limitations.
On this site we use financial models to help us to understand the economics of a business. We do not claim to be able to find the "correct" value of a company. We use models to help us to understand what the market is saying about the future performance of the company. We also use models to help us to determine what we think the performance of the company will be. If there is a mismatch between these two, their is potentially an opportunity to profit from a mispricing in the market. Click below to learn about some of our models