Need to exclude fix the valuation of financial companies, specifically insurers, to exclude investments from excess cash

Huw Edwards 5 years ago updated by OSV Support 5 years ago 5


I think you need to fix the valuation of financial companies, specifically insurers. You are currently counting long term investments as 'Excess Cash' in your DCF and multiples valuation; this is dramatically and dangerously overstating the companies value. 

e.g. IPCC. 

In this case you are subsequently rating this company an A across the board which is not the case from a value perspective.


Jae's response.

I do know what you mean but because the data is standardized, there is a limitation to valuations. It's something we have known about from the beginning. It's also one of the reasons why we do not market ourselves as an industry specific valuation tool or financial industry valuation service  because of the difference in financial statements and data. Too
much data is rolled up for bank and insurance stocks and unfortunately we are not able to split it up.

Same could also be said for oil and gas industry stocks where we are unable to value the reserves for the best and true cash flows.


Please give courtesy of reply.  Bug submitted 2 weeks ago


Huw and I discussed this over email. Best option at the moment is to manually enter the DCF starting value.

I don't understand what you mean by "manually enter the DCF starting value".  Can you please give an example of how to manually calculate the valuation for Allstate (ticker ALL)? 

Will add a note to the tooltip and the how to use section to mention that DCF start values need to be entered manually.