METHOD
INVALUER |
INGRADER |
VALEXXIA's activities are based on an exclusive and effective valuation model, named INVALUER, developed by advanced researches and studies on the economic results, performances and dynamics of equities and economies, which are assessed with two specific methods: INGRADER and INCYCLES.
The name INVALUER means that this model applies the "inner" (core and leading) principles and drivers of businesses economics and the "indicators" of unique Databases, made of the data representing the economics profiles, results and dynamics of equities and economies, which are used as benchmarks for grading the performances of the analyzed businesses.
For the valuation of businesses, INVALUER applies the principles and the logic of attainability planning which measures the viable mid-term outcomes and results of businesses, taking into account the sustainability, feasibility, adequacy and compatibility of their economic performances, profiles and dynamics, on the base of 3 key principles:
Effective valuations have to be based on the knowledge and the management of the "essential (core and leading) key drivers" of the attainable (viable and durable) results and dynamics of businesses that have to be measured with specific formulas, indicators and tools, more advanced and effective than the ones used by the traditional financial planning.
Consistent, effective and objective valuations require the application of methods measuring the intensity and compatibility of the interrelations among the "essential key drivers" of the attainable mid-term results and dynamics of businesses, instead of the traditional financial planning which is structured on too many indicators managed with mechanistic and probabilistic processes.In the longer run, trends of businesses are driven by their fundamental and structural economics profiles and performances, despite in the shorter run they may be affected by contingent and temporary dynamics, creating opportunities for whom are able to apply the right assessment methods.
Grading is an analysis procedure using a scaling metrics which assigns grades to economic performances of analyzed businesses using specific parameters which represent the performances of other comparable businesses.
INVALUER applies the outcomes and the data of advanced and qualified researches on the key drivers, and their relative impacts, of economic business results and dynamics profitability and how they contribute to equity value remuneration.
Our valuation model is aimed at producing better measures of 
mid-term businesses results and dynamics, through an innovative process, made of an integrated system of distinctive principles, formulas and indicators, supported by unique Databases formed by empirical data correlating economics performances, profiles and trend with mid-term results and dynamics of analyzed businesses.
This valuation model is based on the concept of "attainability planning" instead of "probability planning" which is the one more accepted in the theory and more applied by praxis of financial analysts and investors.
Attainability planning measures the viable mid-term results and dynamics of businesses in respect of these principles:
A) Viable mid-term economic results and dynamics have to be assessed with valuation methods that are able to measure and to grade the sustainability, adequacy and compatibility of the indicators explaining the structural and durable business economic profiles, trends and performances;
B) Valuation processes have to use adjusted economic indicators to make them normalized, smoothed and weighted in order to assess the structural and durable business performances, less affected by contingent situations and trends, also responding to the "margin of safety" objective.
C) Valuation of attainable economic results and dynamics have to be supported by the benchmarking of businesse economic performances using Databases made of empirical indicators of comparable entities, situations, contexts.
Valuations of EQUITIES (stocks assets) are managed with a proprietary method, named INGRADER, made of innovative tools (formulas, indicators, processes) for measuring mid-term attainable value remuneration of equities, through a grading process, made of an integrated system of innovative formulas, ratios and indicators and a unique Database for benchmarking the equities performances.
INCYCLES is the method used to study the results and the dynamics of major International ECONOMIES, integrating the indicators of the drivers explaining the results and the dynamics of the specific fiscal and monetary factors of economies and it is based on the assumption that economies cycles are mainly driven by factors related to the "production side" of the economies than the ones related to the "consumption side".
