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fin_valuation

Work the valuation of a company


Description

fin_valuation uses the revenue, operating margin, expenses and PE to compute a market capitalization

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

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

Structural Equation Modeling and Twin Modeling in R

v4.10.10
GPL-3
Authors
Timothy C. Bates [aut, cre] (<https://orcid.org/0000-0002-1153-9007>), Gillespie Nathan [wit], Michael Zakharin [wit], Brenton Wiernik [ctb], Joshua N. Pritikin [ctb], Michael C. Neale [ctb], Hermine Maes [ctb]
Initial release
2021-11-30

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