In the wake of financial tormoil, MIT wngineers and Wall Street analysts got together to create ... More
In the wake of financial tormoil, MIT wngineers and Wall Street analysts got together to create TREFIS.
Understand how a company’s products impact its stock price, and see valuations by experts
Last updated 6 Oct 2011
Published 6 Oct 2011
The stock market can seem like a complete mystery to a lot of us and the fundamental question of how a company’s activity and performance determines its stock price is often met with a blank stare.
A lot of people put great store in a company’s financial statements and whilst these are a great source of information on past performance they don’t immediately give you an insight into the relevant markets or actual product significance. They are not going to shine much light on possible future trends either.
With Trefis you can get a whole lot more insight than you would from an income statement and balance sheet. What’s more you can play around with the numbers to see what might happen to the price of a stock in any future scenario.
The concept of the site is to provide users with an artificial representation of a company’s stock price that digs deeper into all the underlying facts. With the use of forecasts on every aspect of a company’s activity, products and market share, broken down into divisions, a Trefis report will give you a great starting point for your investment decisions.
The system currently covers around 200 major US stocks across a wide range of industries and you can search by specific name or browse the list on the homepage. Once you find the company you’re interested in you can read the Trefis report and analysis and also modify any of the forecasts with your own hunches or insight and see what effect these would have on the stock price.
The site also allows you to create your own price estimates by modifying the Trefis analysis which you can then share with other users. In turn you can see the efforts of fellow users and generally share comments and ideas.
It should be remembered that the prices shown are not the actual quoted price of a stock and there is no guarantee that the two (if different) will ever converge. The hard work of analyzing and forecasting however has already been done for you and the information at your fingertips will help a great deal when considering investment opportunities.
With known historical facts and a considered look into the future the Trefis analysis also brings the "what if" equation into account.