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Future Price Channel® - Angle

The angle of the Future Price Channel® is determined by the company’s expected growth. The future growth of a business is calculated based on the profit potential, taking the growth of the key data points of the company in the last 10 years into account.

Angle

When calculating the future growth, the changing circumstances related to the business and the macro-economic data are taken into account. The company’s sensitivity to economic fluctuations of course plays an important role. New data and forecasts are constantly being incorporated into the calculation of the angle of the Future Price Channel®.

The angle of the channel changes frequently

The angle changes whenever business news, quarterly figures, annual reports, macro-economic data and other news that can influence the future growth of a business are published.

As a result, the angle of the channel changes frequently. Usually the changes are however fairly small. The angle seldom changes by more than one percent when new quarterly figures are released. It is the long-term trend that is useful, not the coincidentally good or bad quarterly figures. New data is therefore assigned an appropriate weight in accordance with its influence on future growth.