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Future Price Channel® - Width

In the long-term the stock price rises just as much as the EPS. The price however moves in waves. The price increases to heights that cannot always be explained and in turn falls down to implausible lows.

Canal du cours futur® - Largeur

Based on a company’s fundamental data from the last 10 years and the Future Profit Potential we calculate the level under which the stock is clearly listed under its value and then using that calculation we plot the bottom line of the Channel. We also calculate the level above which the stock is listed too far above its value and draw the top line of the channel on that basis. The volatility of the stock on the market, however, also plays a role when determining the width of the channel.

The top and bottom lines of the Future Price Channel® are matched to new facts in relation to the economy or the company affected. When calculating the level above which a stock is listed too far above its value or the level under which it is listed too far under its value, each data point is assigned a certain weight according to the influence that it has on the future growth of the business.