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   CONFIGURE|Valuation Settings
  
The Valuation Settings page allows you to review, and with the correct permissions edit, parameters associated with the Intrinsic Valuation model and inputs from individuals at your firm.

StarMine Research has gone to great lengths to develop the approach taken with respect to three important factors in the valuation model, Steady State Growth Rate, Discount Rate and Steady State Dividend Payout Rate. The values for each of these used in the model are the result of focused and disciplined empirical research.

Should your firm have a view into these parameters that is different from that of StarMine, you may nominate any number of individuals to have access to changing these figures for the entire firm. To enable the editing features, please contact your Account Manager.

Please Note: Changes made to these settings apply only to the EPS projections made by users at your firm. They do not affect the calculation of the StarMine figures in the model in any way.

Parameter Listing
On the left of the page, a scrollable box presents the current settings used by the model when a user at your firm enters their projections. A row is presented for each Country. Where enabled, a row may appear for REITs within a country. This is because the assumptions for REITs are entirely different than all other stocks within the model due to their legislated payout requirements.

The three columns following the country name are the parameters for the model. In columns five and six, summary metrics are presented that communicate some implications of the value for that row. These values are important as changing just one of the parameters, such as Discount Rate, can result in unbalanced assumptions and erroneous valuations.

Implied ROE at Steady State
This value communicates the relationship between Steady State Growth and Steady State Payout using a time-tested formula:

Implied Steady State ROE = Steady State Growth

(1 - Steady State Payout)

Warranted P/E at Steady State
This value communicates the relationship between Discount Rate, Steady State Growth and Steady State Payout. It does so by calculating a Forward 1-Year Price to Earnings multiple using the value of a growing perpetuity and some substitution.

Warranted P/E at Steady State = Steady State Payout

(Discount Rate - Steady State Growth)

For those users that are enabled to edit the parameters, columns related to the Steady State Growth Rate, Steady State Dividend Payout Rate and the Discount Rate appear in an editable form. Changing these values will result in changes in the two "balancing" formulas in the last two columns. Clicking the Save Changes button will save your changes. Changes made here are applied to the intrinsic value EPS and FFO projections made by all StarMine Professional users at your firm.

To the right of the Parameter Listing, two static images are displayed. These images communicate the general effect of changing the Steady State Growth Rate and the Steady State Payout Rate. These images are static and will not react to changes of the parameters.

Below the Parameter Listing you will find the names and emails of the individuals at your firm that are enabled to edit these parameters.


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