FactorSage

Intrinsic Value ยท Lesson 1.9

Intrinsic value in strategies

FactorSage strategies do not pick a valuation model for you. You decide which models contribute to the intrinsic value you act on, how they are combined, and what discount you require before buying.

Combining models

Inside a strategy you can pick one or more intrinsic value indicators and combine them using AVG, MIN, MAX, or WEIGHTED_AVG. MIN produces the most conservative valuation. MAX is the most generous. WEIGHTED_AVG lets you trust some models more than others.

The buy threshold

The buy threshold is a discount applied to the chosen intrinsic value. A discount of 20% means the strategy will only consider buying when price is at most 80% of intrinsic value, even before any technical filters fire.

Available fields

  • Per-model fields: DCF_VALUE, OWNER_EARNINGS_VALUE, EPV_VALUE, RESIDUAL_INCOME_VALUE, GRAHAM_VALUE, PETER_LYNCH_VALUE plus their _TTM variants on Pro.
  • Composite field: CUSTOM_INTRINSIC_VALUE reflects whatever combination you configured at the strategy level.
  • Derived field: MARGIN_OF_SAFETY based on the same combined intrinsic value.

Create an account to try this in the live product.

Create an accountCompare plans

Related