Methodology
Valuation models should fit the business
StockValueAI presents educational, model-generated valuation outputs. The goal is to show assumptions clearly, not to tell you what to buy or sell.
Mature, profitable companies
Traditional DCF
Projects future cash flow from a stable business, discounts it back to today, and estimates what the full business may be worth under several assumptions.
- Consistent earnings
- Stable or improving margins
- Several years of operating history
- Cash generation is tied closely to accounting profit
Growth companies with positive free cash flow
FCF Analysis
Focuses on free cash flow when net income is temporarily noisy because the company is reinvesting, scaling, or carrying non-cash expenses.
- Positive free cash flow
- Negative or inconsistent net income
- High reinvestment in growth
- Cash flow is a better signal than earnings
Pre-profitable high-growth companies
Revenue Multiple
Uses revenue scale, growth, and peer multiples when earnings and free cash flow are not yet reliable enough for a cash-flow model.
- Negative earnings
- Negative free cash flow
- High revenue growth
- Comparable public-company multiples are available
Why every report has four scenarios
Business value depends on future assumptions. Scenario ranges make that uncertainty visible by showing how the model changes when growth, margins, discount rates, or multiples move.
Conservative
Lower growth, tighter margins, or a higher required return.
Moderate
A balanced case based on current operating trends.
Optimistic
Better execution, margin improvement, or stronger durability.
Aggressive
Upside assumptions layered together to show the top end of the model range.