Patent Abstract:
Systems and techniques for determining price targets are disclosed. The systems and techniques are designed to be a key workflow tool for investment managers and analysts, saving time and improving investment discipline. Using the disclosed systems and techniques, price targets may be generated based on historic, forward looking, and/or relative valuation metrics which are applied to actual or estimated financial data.

Full Description:
CROSS-REFERENCE TO RELATED APPLICATION 
       [0001]    This application claims priority to U.S. Provisional Application No. 61/621,192 filed Apr. 6, 2012, entitled ‘Price Target Builder’, the content of which is incorporated herein in its entirety. 
     
    
     TECHNICAL FIELD 
       [0002]    This disclosure relates to price targets, and more particularly to systems and techniques for determining price targets. 
       BACKGROUND 
       [0003]    Generally, a price target is an estimate of the future price of an investment asset. In the equity market, price targets are typically generated by analysts and refer to the price level at which an analyst believes a given security will rise or fall over a particular period of time. 
         [0004]    Price targets are considered a key to maximizing return on investment assets, but can also be notoriously difficult to maintain. Typically, a price target based farther in the future has more uncertainty than one based on a shorter time frame. In addition, approaches to deriving price targets run the gamut from using detailed valuation models to relatively simple market multiples. For example, in some instances, investment firms blend elements of market multiple to “triangulate” their way to an optimal price target. As such, price targets tend to be labor-intensive to establish, and even more difficult to maintain and monitor as investment prospects and market conditions change over time. 
         [0005]    Accordingly, there is a need for systems and techniques to improve the generation and maintenance of price targets. 
       SUMMARY 
       [0006]    Systems and techniques for determining price targets are disclosed. The systems and techniques are designed to be a key workflow tool for investment managers and analysts, saving time and improving investment discipline. Using the disclosed systems and techniques, price targets may be generated based on historic, forward looking, and/or relative valuation metrics which are applied to actual or estimated financial data. 
         [0007]    Various aspects of the systems and techniques relate to applying one or more valuation metrics to an investment to compute a price target, and automatically updating the computed price target based on subsequent changes to the one or more valuation metrics. 
         [0008]    For example, according to one aspect, a computer-implement method includes identifying, from a first physical memory location of a computer memory, a first set of valuation metrics for association with an investment asset. The first set of valuation metrics is associated with a first set of values. The method includes applying, from a second physical memory location of the computer memory, a second set of values associated with a second set of valuation metrics associated with the investment asset to the first set of values to compute a price target for association with the investment asset, and computing automatically an updated price target for association with the investment asset upon a change in value of either the first set of values or the second set of values. The method also includes storing the updated price target in a third memory location of the computer memory. 
         [0009]    In another aspect, a computer-implemented method includes defining at least one configurable financial relationship underlying a price target, the price target associated with a financial asset, monitoring the at least one financial relationship for a change in value, and updating the price target associated with the financial asset based on the change in value. 
         [0010]    The systems and techniques disclosed herein may be utilized to compute price targets from relative valuation multiples. Intrinsic valuation and user-defined valuation models may also be utilized to compute price targets. 
         [0011]    For example, in one embodiment, computing a relative valuation-based price target includes a two-step process. One step of the process includes identifying a first set of valuation metrics from a group of common ratios, such as earnings, sales, enterprise value, cash flow, book value, and dividends. Each item of the set of valuation metrics may be associated with a security selection, a peer security, or an industry identifier, as well as a timeframe. 
         [0012]    A second step of the process includes associating a corresponding second set of valuation metrics (e.g., estimate data and fundamental company data) with the first set of valuation metrics in a rule. The rule defines a financial mathematical relationship that is used in computing a price target. In one embodiment, values of the selected valuation metric, corresponding financial data, and computed resulting target price are provided to the user for display on a user display device. A projected change in value also may be computed by comparing a current market price for the investment to the computed target price and determining a difference value. In one embodiment, the determined difference value is computed in percentage terms and is provided to the user for display. 
         [0013]    In one embodiment, one or more selectable options are provided to fine tune each input data value (e.g., identified first and second sets of valuation metrics) used to generate the price target. Additionally, embodiments of the present disclosure utilize multiple sets of valuation metrics and therefore, use multiple rules to compute a price target. Each item of the sets of valuation metrics may be individually weighted by the user or automatically weighted by the system to arrive at a blended price target value. 
         [0014]    Additional systems, methods, as well as articles that include a machine-readable medium storing machine-readable instructions for implementing the various techniques, are disclosed. Details of various implementations are discussed in greater detail below. 
         [0015]    In some embodiments, one or more of the following advantages may be present. For example, the system may apply current or historical valuation ratios associated with a stock, stock peer group, stock sector, industry, country, index to estimates of earnings, revenue, earnings before income before interest and taxes and depreciation and amortization (EBITDA), or other metrics to compute a price target. 
         [0016]    The system may also apply historical premium or discount versus peer group, sector, industry, country, or index metric values to current peer/sector/industry/country/index multiples and estimates of earnings, revenue, and EBITDA values to compute a price target. 
         [0017]    Additional advantages may also be obtained from the present disclosure. For example, one advantage may relate to computing blended price targets. The system may combine multiple rules to produce a blended price target, which may include intrinsic valuation and/or valuation model outputs, and allows for blending of computed price targets with other price target information computed using relative valuation techniques. The blended price targets may then be automatically updated as prices, earnings, estimates, and valuation multiples of the investment asset being analyzed and its peers/industry/sector/country/index change. 
         [0018]    Another advantage may relate to visualization. For example, in one embodiment, a user of the system may be provided a display showing a history (graphically or textually) of how one or more computed price targets based on a set of rules have changed over a time interval. 
         [0019]    Other advantages obtainable from the present disclosure may include ease of use, flexibility to derive target prices, transparent calculations, and an ability to continuously update price targets based on configurable financial relationships defined among input data. 
         [0020]    Additional features and advantages will be readily apparent from the following detailed description, the accompanying drawings and the claims. 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0021]      FIG. 1  is a schematic of an exemplary computer-based system for computing a price target. 
           [0022]      FIG. 2  illustrates an exemplary method for computing updating a price target. 
           [0023]      FIGS. 3-13  illustrate an example graphical user interface and data mappings used in connection with the system shown in  FIG. 1 . 
       
    
    
       [0024]    Like reference symbols in the various drawings indicate like elements. 
       DETAILED DESCRIPTION 
       [0025]      FIG. 1  illustrates a computing system  10  within which embodiments of the present disclosure may be implemented. The computing system  10  is only one example and is not intended to suggest any limitation as to the scope of use or functionality of the invention. The computing system  10  should not be interpreted as having any dependency or requirement relating to any one or combination of illustrated components. 
         [0026]    For example, a suitable computer system may be operational with numerous other general purpose or special purpose computing consumer electronics, network PCs, minicomputers, mainframe computers, laptop computers, as well as distributed computing environments that include any of the above systems or devices, and the like. 
         [0027]    The systems and techniques may be described in the general context of computer-executable instructions, such as program modules, being executed by a computer. Generally, program modules include routines, programs, objects, components, data structures, loop code segments and constructs, etc. that perform particular tasks or implement particular abstract data types. The modules may be implemented in distributed computing environments where tasks are performed by remote processing devices that are linked through a communications network. In a distributed computing environment, program modules are located in both local and remote computer storage media including memory storage devices. Tasks performed by the programs and modules are described below with the aid of figures. Those skilled in the art can implement the description and figures as processor executable instructions, which can be written on any form of a computer readable media. 
         [0028]    In one embodiment, with reference to  FIG. 1 , the system  10  includes a server device  12  configured to include a processor  14 , such as a central processing unit (CPU), random access memory (‘RAM’)  16 , one or more input-output devices  18 , such as a display device (not shown) and keyboard (not shown), and non-volatile memory  20 , all of which are interconnected via a common bus  22  and controlled by the processor  14 . 
         [0029]    As shown in  FIG. 1 , in one embodiment, the non-volatile memory  20  is configured to include a target module  24  for computing at least one price target for an investment asset. Example investment assets include, but are not limited to, stocks, bonds, futures, options, currencies, and other types of publicly and privately held investment securities. The price target may be based on a configurable rule that defines a financial relationship between sets of valuation metrics associated with the investment asset. 
         [0030]    A rule module  26  is provided for generating and storing one or more configurable rules (e.g., definitions describing mathematical financial relationships between at least one item of a first set of valuation metrics and a corresponding item of a second set of valuation metrics) that are used by the target module  24  to compute a price target. For example, in one embodiment, the rule module  26  generates and stores a rule in the set of rule data  46  that defines multiplying at least one item of a first set of valuation metrics with an item included in a second set of valuation metrics. The rule module  26  may also define a weighting for association with each item of the set of first and second valuation metrics included in a rule, and generate and store text describing the generated rule in the set of rule data  46 . 
         [0031]    Interface module  32  provides a graphical user interface (GUI) for selecting and displaying valuation metrics and computed price targets. Example graphical user interfaces provided by the interface module  32  are shown and discussed in connection with  FIGS. 3-9 ,  10 B- 11  and  13 . 
         [0032]    Currency module  28  processes currency (e.g., an accepted medium of exchange) mismatches between computed target prices and price currencies. The currency module  28  may be executed when estimate and/or fundamental data values are obtained in a first currency and target prices are computed in a second currency. In one embodiment, once the target module  24  computes a price target in a first currency, the currency module  28  converts the computed price target from the first currency to a second currency reflecting the currency in which the investment asset trades. 
         [0033]    Update module  30  monitors and automatically invokes the target module  24  to compute updated price targets based on any change in valuation metrics underlying a rule. Additional details of the various modules are discussed in connection with  FIGS. 2-12 . 
         [0034]    As shown in  FIG. 1 , in one embodiment, network  32  includes various devices such as routers, server, and switching elements connected in an Intranet, Extranet or Internet configuration. In one embodiment, the network  32  uses wired communications to transfer information between an access device  50 , the server device  12 , and a data store  34 . In another embodiment, the network  32  employs wireless communication protocols to transfer information between the access device  50 , the server device  12 , and the data store  34 . In yet other embodiments, the network  32  employs a combination of wired and wireless technologies to transfer information between the access device  50 , the server device  12 , and the data store  34 . 
         [0035]    The access device  50  can include a personal computer, laptop computer, or other type of electronic device, such as a cellular phone or Personal Digital Assistant (PDA). In one embodiment, for example, the access device  50  is coupled to I/O devices (not shown) that include a keyboard in combination with a pointing device such as a mouse for sending web page requests to the server device  12 . Preferably, memory of the access device  50  is configured to include a browser  50 A that is used to request and receive information from the server device  12 . Although only one access device  50  is shown in  FIG. 1 , the system  10  can support multiple access devices. 
         [0036]    The data store  34  is a repository that maintains and stores information utilized by the before-mentioned modules  24 ,  26 ,  28 ,  30  and  32 . In one embodiment, the data store  34  is a relational database. In another embodiment, the data store  34  is a directory server, such as a Lightweight Directory Access Protocol (‘LDAP’). In yet another embodiment, the data store  34  is an area of non-volatile memory  20  of the server device  12 . 
         [0037]    As shown in  FIG. 1 , in one embodiment, the data store  34  includes a set of pricing data  36 . As used herein, the words ‘set’ and ‘sets’ refer to anything from a null set to a multiple element set. 
         [0038]    The set of pricing data  36  may be quote and trade-related data associated with equity, fixed income, financial derivatives, currency, and other investment instrument types. The set of pricing data  36  may include current as well as historical security pricing information associated with one or more of the above-mentioned investment types. In one embodiment, the set of pricing data  36  includes a real-time data feed of security asset prices as well as historical security asset prices. 
         [0039]    A set of fundamentals data  38  may also be provided. The set of fundamentals data  38  may include fundamental company data, such as inventory turnover, earnings, sales, dividends, and similar items, associated with a particular tradable security, regardless of market liquidity, as well as index, sector, and other tradable security data. 
         [0040]    As shown in  FIG. 1 , the data store  34  includes a set of estimates data  40 . The set of estimates data  40  includes consensus company earnings forecasts and recommendations for investment assets. In one embodiment, the set of estimates data  40  includes broker estimates, such as Thomson Reuters Smart Estimates, which indicate the direction of earnings surprises for assets. In another embodiment, the set of estimates data  40  also includes Thomson Reuters Smart Targets, which indicate the likelihood that a firm will purchase or sell a given asset based on the fund&#39;s historical purchasing activity and profile. In yet another embodiment, the set of estimates data  40  includes proprietary estimates generated by the user or a firm. In yet another embodiment, the set of estimates data  40  includes a combination of broker estimates and proprietary estimates. 
         [0041]    A set of peer data  42  is also provided that, for a given investment asset, defines a default set of investment assets having similar characteristics. For example, in the context of equity markets, the set of peer data  42  may be based on analyst coverage overlap and/or be user-defined. Example user-defined based criteria may include companies in a same industry or having a similar market capitalization or sales as the investment asset for which a price target is desired. 
         [0042]    As shown in  FIG. 1 , in one embodiment, the data store  34  includes a set of valuation data  43 . The set of valuation data  43  is a repository for analytic information computed by the target module  24  on the basis of data derived from one or more sets of pricing data  36 , fundamentals data  38 , estimates data  40  and peers data  42 . For example, in one embodiment, content of the set of valuation data  43  includes computed time series Price/Earnings (P/E) ratios derived from the set of pricing data  36  and the set of fundamentals data  38 . The set of valuation data  43  may include a valuation time series (e.g., single-security and various benchmark indices) and/or current and historical benchmark valuation ratios (e.g., historical median and/or aggregate value) that may be utilized in generating a price target. 
         [0043]    In addition, a set of price target data  44  is provided that serves as a repository to store and access computed and updated price target information. The set of price target data  44  may be configured to be shared with more than one user or be limited in access to a single user of the system. A set of rule data  46  is also provided that serves as a repository for configurable rules (e.g., algorithmic formulas) used to compute price targets for investment assets. Similar to the set of price target data  44  described previously, rules included in the set of rule data  46  may be shared with more than one user or be limited in access to a single user of the system using a set of access permissions. The set of access permissions may be implemented using standard database access and permission techniques as known in the art. Additional details concerning information included in the data store  34  are discussed in greater detail below. 
         [0044]    Although the data store  34  shown in  FIG. 1  is directly connected to the network  32  via link  47 , it will be appreciated by one skilled in the art that the data store  34  and/or any of the information shown therein, can be distributed across various servers and be accessible to the server  12  over the network  32 , be coupled directly to the server  12 , or be configured in an area of non-volatile memory  20  of the server  12 . 
         [0045]    Further, it should be noted that the system  10  shown in  FIG. 1  is only one embodiment of the disclosure. Other system embodiments of the disclosure may include additional structures that are not shown, such as secondary storage and additional computational devices. In addition, various other embodiments of the disclosure include fewer structures than those shown in  FIG. 1 . For example, in one embodiment, the disclosure is implemented on a single computing device in a non-networked standalone configuration. Data input and requests are communicated to the computing device via an input device, such as a keyboard and/or mouse. Data output, such as the computed significance score, of the system is communicated from the computing device to a display device, such as a computer monitor. 
         [0046]      FIG. 2  discloses an example method of computing a price target for an investment asset using one or more rule. With reference to  FIG. 3 , steps  52 - 80  are optionally repeated for each rule defined for an investment asset. Once all defined rules are evaluated for the investment asset, overall target prices are computed and stored, as shown at steps  82  and  84 . 
         [0047]    For example, as shown in  FIG. 2  at step  52 , the target module  24  first obtains a valuation multiple to be associated with an investment asset for which a price target is desired. The investment asset for which a price target is to be computed is hereinafter referred to as a focus security. The valuation multiple may relate to the focus security or alternatively, a peer security. Example valuation multiples include, but are not limited to, the following ratios: price/earnings (P/E), price/cash flow, price/sales, price/book, enterprise value/earnings before interest, taxes, depreciation and amortization (EV/EBITDA), dividend yield, Price/Earnings to Growth (PEG), Enterprise Value to Sales (EV/Sales) and Price to Intrinsic Value (PVA). In one embodiment, as discussed in connection with  FIGS. 3-4 , the interface module  32  provides a graphical user interface for prompting a user to select a valuation multiple. Upon selection, the valuation multiple is accessed by the target module  24 . The target module  24  may also automatically select the valuation multiple if the valuation multiple is already defined in a rule associated with the focus security, as discussed below. 
         [0048]    Next, at step  54 , the target module  24  determines whether the valuation multiple is a current or historical valuation multiple. If the valuation multiple is a historical valuation multiple, at step  62 , the target module  24  obtains the latest time series associated with the valuation multiple from one or more sets of data in the data store  34 . The target module  24 , at step  64 , then computes a summary metric  64  of the latest time series and stores the summary metric in the set of valuation data  43  in the data store  34 . The summary metric may be a historic median or aggregate value computed from the time series. 
         [0049]    If the valuation multiple obtained at step  52  is a current multiple, at step  56 , the target module  24  determines whether the current multiple is peer-based (e.g., based one or more assets having similar characteristics). If the current multiple is peer-based, at step  60 , the target module  24  identifies the one or more assets having similar characteristics, hereinafter referred to as peers, to the focus security from the set of peers data  42  and computes an overall peer metric value based on valuation multiples associated with each of the peers. The target module  24 , at step  66 , then stores the computed overall peer metric value in the valuation data set  43  of the data store  34 . Otherwise, if the current multiple is not peer-based, at step  58 , the target module  24  obtains the most recent value associated with the current multiple, and at step  66 , stores the value of the current multiple value in the valuation data set  43  of the data store  34 . 
         [0050]    Next, at step  68 , the target module  24  obtains estimate data and/or fundamentals data associated with the focus security. In one embodiment, once the target module  24  obtains the valuation multiple and estimate data and/or fundamental data from the data store  34 , the rule module  26  is invoked by the target module  24  to generate a configurable rule representing a financial mathematical relationship between the obtained valuation multiple and the obtained estimates and/or fundamental data. In one embodiment, the rule generated is a formula indicating that the obtained valuation multiple is to be multiplied by the obtained estimate and/or fundamental data value to compute an implied target price for the focus security. As used herein the phrases “implied target price” and “implied price target” refer to a computed price target derived from a single rule. Of note, multiple rules may be generated for a focus security. Further, it will be appreciated by one skilled in the art that the rule module  26  is not limited to a multiplication implementation and that other additional algorithmic techniques may be defined in rules generated by the rule module  26 . 
         [0051]    Once the rule module  26  generates a rule, the target module  24  stores the value of any obtained estimates and/or fundamental data in the set of valuation data  43 , associates the generated rule with the focus security, and stores the generated rule in the set of rule data  46 , as indicated at step  70 . Next, as shown in steps  72  and  74 , respectively, the target module  24  applies defined weightings to the obtained valuation multiple and/or estimate and fundamental data values, and computes an implied target price for the focus security using the rule. Weightings may be system defined based on investment asset type and/or user defined and associated with generated rules. 
         [0052]    Once an implied target price is computed, at step  76 , the rule module  26  generates a textual description of the rule used to generate the implied target price. In one embodiment, the rule module  26  generates the textual description from selections the user has made to define the rule and updates the textual description to reflect changes the user may make to the rule. For multiple rules, the rule module  26  associates a rule number with the textual description. Next, at step  78 , the target module  24  stores the computed implied target price and the rule module  26  stores the textual description of the rule in the data store  34 . The target module  24 , at step  80 , then determines whether additional rules associated with the focus security are defined in the system. If additional rules are defined, the target module  24  computes additional implied target prices for the focus security using the before-mentioned techniques described in steps  52 - 78 . Once all of the rules associated with a focus security have been invoked to compute additional implied price targets, at step  82 , the target module  24  computes an overall computed target price based on the implied price targets. This may include averaging the computed implied price targets together and/or weighting one or more computed implied price targets differently than other computed implied price targets. Lastly, at step  84 , the target module  24  stores the overall computed target price in the price target data set  44 . 
         [0053]    In one embodiment, once the overall target price is computed, the before-mentioned update module  30  monitors the valuation multiples, estimates and/or fundamental values utilized in one or more rules. The monitoring may include determining whether a change in value has occurred in either a valuation multiple, estimate, or fundamental value. Once a change in value is detected, the target module  24  automatically re-computes one or more implied and overall price targets due to the change in value. In one embodiment, this is implemented by initially storing state information, such as date and time values, with each valuation multiple, estimate and/or fundamental data, and subsequently invoking the target module  24  to compute the overall computed target price upon a change in value. In another embodiment, a batch process is invoked by the update module  30  to access the latest data for valuation multiple values, estimate values, and fundamental values. 
         [0054]    Turning now to  FIG. 3 , an example graphical user interface (GUI)  100  provided by the interface module  32  is disclosed. The GUI  100  may be utilized by a user of the system to select valuation metrics to form one or more rule and display generated target prices. As shown in the  FIG. 3  example, the GUI  100  may be included in an overall suite of investment management tools  101 , such as Thomson Reuters&#39; Eikon product. Alternatively, the GUI  100  may be provided as part of a standalone investment management tool. 
         [0055]    The example shown in  FIG. 3  illustrates a computed final target price for an equity investment. The computed final target price, along with intermediary computations, may be stored in a central proprietary data store for use throughout the investment management tool. As discussed herein, an investment asset for which a price target is desired is also referred to as a focus security. As such, the example focus security shown in the  FIG. 3  example is “Oracle Corporation (ORCL US)”. 
         [0056]    In one embodiment, as shown in  FIG. 3 , the GUI  100  includes a valuation pane  102  for selecting a first valuation multiple to be used in a rule, an estimate pane  104  for selecting a second valuation multiple, such as an estimate or fundamental metric, to be used in the rule, and an implied target pane  106  for displaying an implied price target generated using the rule. A final target pane  108  also is provided that displays computed overall target prices for investment assets based on one or more computed implied price targets. Details of each of the panes  102 - 108  are discussed in detail below. 
         [0057]    The valuation pane  102  includes a plurality of valuation pull-down options  102 A-E that allow a user to select from various valuation metrics that may be stored in a rule and used to generate a target price. Example valuation metrics include absolute valuation multiples, such as P/E, EV/EBITDA, Price/Cash Flow, Price/Sales, Price/Book, Dividend Yield, PEG, EV/Sales, PVA, as well as relative valuation multiples, such as ratios relating to benchmark securities, industries, and sectors. A multiple spinner control  102 F and multiple window  102 G are also provided for weighting valuation values and displaying weighted valuation values, respectively. As shown in the  FIG. 3  example, weighting percentages may be set by toggling the multiple spinner control  102 F. 
         [0058]    As shown in the  FIG. 3  example, in one embodiment, the valuation pane  102  includes a security option  102 A that allows a user to select an investment asset other than the focus security. For example, as shown in the  FIG. 3  example, the stock “INTC” is selected. Values available for selection under the security option  102 A include, but are not limited to, the focus security, peer security, benchmarks and indices. Once a security is selected under the security option  102 A, a plurality of valuation metrics associated with the selected security may be made available to the user for selection. For example, as shown in  FIG. 3 , the current twelve (12) month mean P/E value for INTC is selected as a first valuation metric to be used in computing the price target. The P/E value is then subsequently displayed in the multiple window  102 G. If the percentage value set by a multiple spinner control  102 F (described below) differs from one-hundred percent (100%), the weighted P/E value is displayed in the multiple window  102 G. 
         [0059]    The estimate pane  104  includes a plurality of estimate pull-down lists  104 A-B that allow the user to select various estimate and/or fundamental metrics associated with the focus security and which may be stored in the rule and used to generate the target price. As shown in the  FIG. 3  example, an estimate spinner control  104 C and estimate window  104 D may also be provided for weighting estimate and/or fundamental data and displaying estimate and/or fundamental data, respectively. 
         [0060]    Once a valuation multiple is selected from the valuation pane  102  and an estimate and/or fundamental metric is selected from the estimate pane  104 , the rule module  26  stores the rule in the set of rule data  46 . The target module  24  then executes the stored rule and provides a computed target price to the implied target pane  106 . 
         [0061]    In one embodiment, the implied target pane  106  includes a rule description portion  106 A, an implied display portion  106 B, and an add-rule option  106 E. The rule description portion  106 A is used to display a textual description of the rule stored in the set of rule data  46 . For example, as shown in the  FIG. 3  example, the rule description portion  106 A includes generated text by the rule module  26  that indicates that Intel Corporation&#39;s current forward twelve (12) month mean estimate P/E (no adjustment) is being applied to the forward twenty-four (24) month SmartEstimate (no adjustment), as neither the mean estimate P/E nor SmartEstimate is weighted. 
         [0062]    The implied display portion  106 B displays the computed implied target price  106 C upon the target module  24  executing the rule. For example, as shown in  FIG. 3 , the rule defines multiplying the first valuation multiple value, “9.7”, by the second valuation multiple value, “2.1”, to compute the implied target price for the focus security of “$20.37”. In one embodiment, in addition to displaying the computed implied target price  106 C, the implied display portion  106 B also includes a display label  106 D indicating whether the computed implied target price  106 C is greater than or less than the current market price of the focus security. 
         [0063]    For example, as shown in the  FIG. 3  example, in one embodiment, after the target module  24  computes the implied target price, the target module  24  computes a percentage price difference between the computed implied target price and current price of the focus security. If the computed implied target price  106 C exceeds a last price (e.g., current market price) of the focus security, the computed percentage price difference and text label “Upside” are displayed in the implied display portion  106 B. If the computed implied target price  106 C is less than the last price  108 D of the focus security, the computed percentage price difference and text label “Downside” are displayed in the implied display portion  106 B. Otherwise, no label is displayed with the computed percentage difference. As shown in the  FIG. 3  example, the computed implied target price is “$20.37”, which represents a “4.9%” upside over the last price of “19.41”, shown in the final target pane  108 . 
         [0064]    The add-rule option  106 E allows a user to define additional rules for association with a focus security. An example of a computed overall price target based on multiple rules is shown and described in connection with  FIG. 4 . 
         [0065]    The final target pane  108  displays computed overall target prices that may be based on one or more rule. As shown in the  FIG. 3  example, the final target pane  108  includes a final display portion  108 A for displaying a computed overall price target  108 B and an overall display label  108 C indicating whether the computed overall price target  108 B is greater than or less than the last price  108 D associated with the focus security. 
         [0066]    In one embodiment, the final target pane  108  also includes a street target price  108 E (e.g., a mean target price based on estimates from a number of Wall Street investment firms) and if available (e.g., previously computed), a current target  108 F representing a prior computed overall price target for the focus security. 
         [0067]    As shown in the  FIG. 3  example, in one embodiment, the final target pane  108  also includes an auto-update radio box  108 G that, once selected, causes the update module  30  to monitor and automatically cause the target module  24  to compute updated implied and overall target prices upon a change in rule or rule values associated with the focus security. A set target button  108 H is also provided that, once selected, stores the computed overall price target as the current target for the focus security. 
         [0068]      FIG. 4  illustrates another instantiation of the GUI  100  shown in  FIG. 3 . As shown in the  FIG. 4  example, various sets of valuation metrics (e.g., absolute metrics  110 A and relative valuation metrics  110 B) may be selected and associated with one another to form one or more rules. Each formulated rule  110 A and  110 B may then be executed by the target module  24  to compute implied target prices  106 C and  110 C. In one embodiment, as shown in  FIG. 4 , the computed implied target prices  106 C and  110 C may be weighted and summed together to compute an overall price target, which is displayed in the final target pane  108 . 
         [0069]    In one embodiment, for each defined rule, the interface module  32  provides an implied target pane  106  that includes a target spinner control  106 F (described below) allowing a user to specify a weight value to apply to each computed implied price target price. For example, as shown in the  FIG. 4  example, the target spinner control  106 F of each implied target pane  106  is set to fifty percent (50%) indicating to the target module  24  and/or update module  30  that only 50% of the computed implied price target is to be used in computing the overall price target for the focus security. The final target pane  108  shown in  FIG. 4  displays a computed overall target price based on multiple computed implied price targets  106 C,  110 C. 
         [0070]    Referring to  FIGS. 3 and 4 , in one embodiment, value adjustments made by the multiple spinner control  102 F, estimate spinner control  104 C, and target spinner control  106 F are in increments of one (1) with a minimum value of one (1) and a maximum value of one-hundred (100). Each spinner control  102 F,  104 C,  106 F may also include a text box allowing the user to type over values to change or set previous settings. 
         [0071]    Referring now to  FIGS. 5A-5B , a pop-up dialog box  200  provided by the interface module  32  is disclosed. The pop-up dialog box  200  allows a user to select a valuation multiple type, hereinafter referred to as a mode, for inclusion in a rule. As shown in the  FIG. 5A  example, in one embodiment, a multiple type radio box  202  is provided that allows selection of an absolute mode  202 A or a relative mode  202 B. Mode selections made in the pop-up dialog box  200  are indicated in the valuation pane  102  discussed in connection with  FIGS. 3 and 4 . Referring to  FIG. 4 ,  110 A illustrates an absolute mode selection and  110 B illustrates a relative mode selection. 
         [0072]    Referring back to  FIG. 5A , in one embodiment, upon selection of the absolute mode  202 A, the source for the valuation multiple is determined. The source may be the focus security  204  (“AAPL.O”) itself, or alternatively, a sector  206 , an industry  208  or peer median  210  (with the number of peers shown in parenthesis) identifier. As shown in the  FIG. 5A  example, in one embodiment, the pop-up dialog box  200  also may include a dropdown list  212  allowing the user to optionally select one of a plurality of peer securities (“DELL.OQ” in the  FIG. 5A  example) to be used as the valuation source, as well as a free form text field  214  for specifying a security identifier, such as a Reuters Instrument Code (RIC), as the valuation source. Once a valuation source is identified, the valuation source is set to the security option  102 A value set in the valuation pane  102 . For example,  FIG. 6  shows an example of the peer security “DELL.OQ” having been selected as the valuation source from the pop-up dialog box  200  and subsequently being used for valuation multiple values in the valuation multiple pane  102 . 
         [0073]    Referring to  FIG. 5B , upon selection of the relative mode  202 B, the focus security  204  and peer median  210  shown in connection with  FIG. 5A  are not displayed in the pop-up dialog box  200  while other options shown in connection with  FIG. 5A  remain available for selection. 
         [0074]      FIGS. 7 and 8  illustrate display differences in the GUI  100  between selection of the absolute mode  202 A and the relative mode  202 B. With respect to  FIG. 7  and the discussion below, the terms “standard” and “absolute” are used interchangeable to refer to the absolute mode. Valuation multiple values using the relative mode differ from those using the absolute mode. In absolute mode, metric values are based on a ratio associated with the focus security. In relative mode, metric values are based on a ratio associated with a user selected security, industry or sector. For example, as shown in  FIG. 7 , upon selection of absolute mode and the security INTC from the pop-up dialog box  200 , the valuation pane  102  displays INTC&#39;s P/E value of 9.7. As shown in  FIG. 8 , upon selection of the relative mode and selection of sector associated with the security INTC from the pop-up dialog box, INTC&#39;s P/E is displayed as 1.1 times that of the semiconductor industry, which may be adjusted via the provided multiple spinner control  102 F. 
         [0075]    Further, graphical clues may be provided in the GUI showing differences between absolute mode and relative mode. For example, as shown in  FIG. 8 , in one embodiment, the color display of text and number values associated relative mode values differs from text and number values associated with absolute mode values. 
         [0076]      FIGS. 9 and 10A  disclose additional details of valuation metric selection provided by the interface module  32 . As shown in  FIG. 9  and discussed in connection with  FIG. 3 , in one embodiment, the valuation pane  102  includes four (4) metric dropdown lists  102 B-E. 
         [0077]    In one embodiment, each of the items included in the metric dropdown lists  102 B-E may have zero to many dependencies. For example, as shown in the chart of  FIG. 10A , the first metric dropdown list  240  corresponding to  102 B of  FIG. 9  may include, but is not limited to, the following items: “P/E”, “EV/EBITDA”, “Price/Cash Flow”, “Price/Sales”, “Price/Book”, and “Dividend Yield”. Additional items may include “PEG”, “EV/Sales” and “PVA”. 
         [0078]    In one embodiment, upon selection of the “PEG” item, the user is provided a time period selection for the growth rage. The target module  24  then obtains the PEG ratio value for the selected time period and applies the same to the EPS value to compute a price target. Default settings for the PEG ratio, selected time period, and EPS value may also be established. For example, in one embodiment, default settings for PEG metric is set to “1.00”, the next twelve (12) month period is set for the selected time period, and EPS value is set to a mean EPS estimate. 
         [0079]    In one embodiment, upon selection of the “Price/IV” item, the user is provided data from a Starmine Intrinsic Valuation model which the target module  24  uses to compute the price target. Similar to other valuation metrics discussed previously, the user is provided the ability to adjust the value of the IV (default value may be set to “1.0”) to use in computing the price target. 
         [0080]    The second metric dropdown list  242  corresponding to  102 C of  FIG. 9  may include, but is not limited to, the following items: “Current” and “Historical”. In one embodiment, selections from the second metric dropdown list  242  determine what metrics items are to be available in the third metric dropdown list  244 . For example, as shown in the  FIG. 10A  example, upon selection of the “Current” item in the second metric dropdown list  242 , the third metric dropdown list  244  corresponding to  102 D of  FIG. 9  is populated with the following items: “Forward 12 Month (F12M), “Forward 24 Month (F24M)”, “FY1 (mm-yy)” and “Trailing”. 
         [0081]    Alternatively, upon selection of the “Historical” item in the second metric dropdown list  242 , the following items are populated by the interface module  32  in the third metric dropdown list: “2 Year F12M”, “5 Year F12M”, “10 Year F12M”, and “15 Year F12M”. Likewise, as shown in  FIG. 10A , subsequent selections from the third metric dropdown list  244  may cause different items to be populated in the fourth metric dropdown list  246 . 
         [0082]    In one embodiment, the second metric dropdown list  242  includes a “Fixed Value” option (not shown). Upon selection of the “Fixed Value” option, the user may define a value to use for any of the metrics shown in the first metric dropdown list  240 . This user-defined value may then be utilized by the target module  24  to compute the price target and may remain unchanged once set initially. 
         [0083]    In one embodiment, items selected from metric dropdown lists  102 B-E may also cause different estimate and/or fundamental metrics  104 A- 104 B to be automatically displayed in the estimates pane  104 . For example, in one embodiment, referring now to  FIGS. 10B and 11 , upon selection of the “P/E” metric ratio from the first metric dropdown list  102 B, the interface module  32  automatically selects an estimate label  240  for display in the estimate pane  104  and populates the pull-down lists  104 A-B discussed previously with relevant estimate and/or fundamental metric items. Similar to the metric dropdown lists  102 B-E discussed previously, items selected in the first pull-down list  104 A may cause different items to be populated in the second pull-down list  104  B.  FIG. 11  illustrates example first metric dropdown list items  240  with corresponding estimate labels  242 , and  FIG. 12  illustrates example selections of the first pull-down list  104 A and subsequent items populated in the second pull-down list  104 B based on the selection. 
         [0084]    Turning now to  FIG. 13 , in one embodiment, the interface module  32  also provides chart integration into the GUI  100 . For example, as shown in the  FIG. 13  example, each of the valuation pane  102 , the estimate pane  104 , and the implied target pane  106  include charts  250  for displaying graphically changes in valuation multiples and estimates data used in defined rules over time, as well as how resulting implied target prices based on each rule and overall price target have changed over time. 
         [0085]    Various features of the system may be implemented in hardware, software, or a combination of hardware and software. For example, some features of the system may be implemented in one or more computer programs executing on programmable computers. Each program may be implemented in a high level procedural or object-oriented programming language to communicate with a computer system or other machine. Furthermore, each such computer program may be stored on a storage medium such as read-only-memory (ROM) readable by a general or special purpose programmable computer or processor, for configuring and operating the computer to perform the functions described above.

Technology Classification (CPC): 6