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Started

Absolute PE valuation values are inaccurate and misleading under certain circumstances.

Curt Lindenbaum 4 months ago • updated by Jae Jun 4 months ago 4

I noticed on the Valuation Tab that the Absolute PE Valuation method gives the same value as a previously looked up symbol if it cannot calculate an actual value.  This is very misleading and should be fixed.

Under review

@Curt,


Can you provide 2 examples so that we can test and fix asap if it is an issue?

OSV


Sorry it has taken so long to reply.  Here are some examples taken this morning (6/28/2018)


Ex. 1

1.  Open main screen and select VALUATION on the left panel.

2.  Enter ILMN as the symbol.  Notice that all the valuations have positive values.

3.  Notice the value of the Absolute PE valuation.

4.  Select IONS as the symbol.  Notice that at least one valuation other than Absolute PE is negative.

5.  Notice that the Absolute PE value is exactly the same as for ILMN.  There is NO WAY this is correct!!!

6.  Select ISIG as the symbol.  Notice that all the valuations have positive values.

7.  Notice that the Absolute PE valuation has changed and not other valuations are negative.


Ex. 2

1.  Open main screen and select VALUATION on the left panel.

2.  Enter SCHW as the symbol.  Notice that all the valuations have positive values

3.  Notice the value of the Absolute PE valuation.

4.  Select SQ as the symbol.  Notice that at least one valuation other than Absolute PE is negative.

5.  Notice that the Absolute PE value is exactly the same as for SCHW.  There is NO WAY this is correct!!!

6.  Select TEAM as the symbol.  Notice that at least one valuations is negative.

7.  Notice that the Absolute PE valuation is the same as for SCHW again.

8.  Select TAX as the symbol.  Notice that all the valuations are positive and the Absolute PE valuation has changed.


It is obvious to me that when one of the valuation methods results in a negative valuation, the Absolute PE cannot be calculated correctly.  Your software simply retains the previous value in that storage variable.  This is misleading if one depends on Absolute PE valuation because the values appear as if they are correct, but they clearly are not accurate.  In addition, this error skews the value of the average valuation shown on the right side of the VALUATION screen.


I hope this is sufficient evidence of a software bug to get your team to at least investigate the unwanted side effect of the inability to properly determine a valuation.


Curt Lindenbaum


Started

I see what it is.

Since IONS has a negative PE, the Abs PE model does not apply. Therefore the old value still remains.

https://www.screencast.com/t/7W56vmO5

Will have it updated.