How does Trefis come up with the Trefis price?
The Trefis price is the result of mathematically combining all of our forecasts for a company into a single number representing the per share value of the company. The Trefis forecasts are used to calculate future revenues, costs and cash profits for a company. The future cash profits are then discounted to the present using commonly used valuation methodologies. We basically estimate the fair or intrinsic value of the stock price based on its fundamental drivers, and present it to our users. When compared to market price, it tells you whether the market price is lower or higher than our estimate of the true value of the company’s stock price. Take a look at our Finance Basics help category for more information on the methodology.
