Identifying Mispriced Stocks
Overview
Stock valuation is one of the most important success factors in the financial market. The right judgment at the right time is what decides whether you should sell or buy stocks and how it will impact your earnings. Financial market research has been constantly evolving, always with the promise of making the right decisions as quickly as possible. Even offering on-demand services with specialists, analysts, and researchers, companies need automated solutions to have a competitive advantage.
Challenge
ReachX transforms traditional financial market and investment banking research services with its global expert platform. However, one of their main problems was to automate the process of analyzing companies by evaluating the price of their shares.
London,
United Kingdom
Opportunity
We developed a solution based on regression models to predict the valuation of a company based on its fundamentals and peers, that is, similar companies.
Using companies’ data automatically collected from Reuters Eikon, we built a system that analyzes factors such as growth rate and EBITDA to determine if the stock price was fair.