pre-made discounted cash flow model service
Hey guys, I was given a class project (high school) to try and come up with a entrepreneurial idea. The focus was on some sort of small business idea on a high school level (babysitting, dog care etc.), but I don't really have any interest in that kind of work.
Instead, I came up with the idea of creating a company which analyzed companies' financials, developing pre-made discounted cash flow models. These DCFs could be downloaded and used as analysis tools for investors.
I came up with the idea because many investors do not have the time to fully analyze the viability of a potential investment, and by doing the labor intensive work for the customer (building out the model), we could potentially save people a lot of time.
These DCF analyzations would be supplemented by concise written reports on the companies themselves. Currently, I don't think there is anything out there that provides this sort of professional service.
I've made a short survey in order to find out if there is a market for such a service. I'd embrace any comments! Thanks!
Good idea, but sounds suspiciously like Equity Research which is a fairly fundamental aspect of Ibanking. Your teacher may not know this though?
It pretty much is equity research, but we think that providing the service for free is something attractive and not done at the minute.
Took the survey. This is a fairly decent idea. I'd definitely use it, but I'm not sure how you'd monetize it if it's a free service. If you want to talk more about it, let me know - I have experience with web startups and web development.
Cheers
Oh man, develop this well and it'll blow your classmates out of the water. Good stuff! I didn't even know what DCF was until junior year of college.
You know there are tons of Indian firms that are outsourcing this right now? And how do you expect investors to trust a high schooler with complex modeling without any prior exp? And wikiinvest used to offer the same thing for free.
Garbage In Garbage Out
It's good for a high school project, but that's about all.
[quote=Researchcorp]Hey guys, I was given a class project (high school) to try and come up with a entrepreneurial idea. The focus was on some sort of small business idea on a high school level (babysitting, dog care etc.), but I don't really have any interest in that kind of work.
Instead, I came up with the idea of creating a company which analyzed companies' financials, developing pre-made discounted cash flow models. These DCFs could be downloaded and used as analysis tools for investors.
I came up with the idea because many investors do not have the time to fully analyze the viability of a potential investment, and by doing the labor intensive work for the customer (building out the model), we could potentially save people a lot of time.
These DCF analyzations would be supplemented by concise written reports on the companies themselves. Currently, I don't think there is anything out there that provides this sort of professional service.
I've made a short survey in order to find out if there is a market for such a service. I'd embrace any comments! Thanks!
http://www.surveymonkey.com/s/F3ZXMPM[/quote]
Its already been done:
http://www.newconstructs.com/nc/index.htm
All they do is DCFs of public firms. I interviewed with them a while back, only to find that it was the mechanical outsourcing of basic fundamental analysis (DCF). They use the same model for pretty much every company, and their analysts simply drag/drop data from 10Ks into the models.
Thanks for the link, this is interesting but they charge a fee for their most recent reports and that's not something we're planning on doing.
Thanks everyone for the feedback. it looks like we'll go through with the idea in order to gain some valuable modeling experience, hopefully building it into something we can further develop and monetize later on.
http://www.analysis-one.com/
Also, if you do create models do not give them out. Sell your service/advice not your proprietary information.
a free service already exists..i'll post the web site if i find it again. i ran across it by accident.
vuru kinda does this http://www.vuru.co/analysis/AAPL/valuation
Also, don't most banks have different templates? A universal template would not work?
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