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Artificial Intelligence Applied to Asset Valuation

  • Rational Investing is an institutional quality system for the screening, data scrubbing, and discounted cash flow valuation of stocks as well as entire ETF’s or other portfolios

  • It is the only available system to use heuristics rather than statistical tools

  • It is completely standardized across all sectors and market caps

  • The system uses the yield curve as well as the specific circumstances of each firm in its valuation in a manner not possible with regression and ratio based filtering

  • The results are compelling in their returns as well as their intuitive appeal

  • Rational Investing represents a quantum leap from the current state of the art. Its discount rate methodology incorporates considerable work on fundamental factors along the lines originally introduced in research by Fama and French as well as the impact of the yield curve on equity valuation. However, it goes beyond ‘CFROI’, statistical modeling or principal components analysis to execute a logical tree in a fashion that an experienced human analyst would. The results are tested for a 'fit' across the entire US equity market by incorporating macroeconomic risks, not just a handful of names in a sector a typical analyst would have experience in.

    For our clients, we create a tailored user experience by supporting our models with a variety of screens based on investment style and offer additional analysis extracted from footnotes of SEC filings such as mineral reserves, ownership information, pension liabilities etc. or from integration with third party data sources.

    Our product's edge comes from a unique understanding of the path of equity prices in the medium term, calibrated using an institutional size real money portfolio, as well as a transparent interface.


  • History of scrubbed SEC filings which can produce a fully malleable DCF valuation spreadsheet using heuristics (Artificial Intelligence rules based logic) on 2500+ North American tickers and funds going back several using our desktop system downloadable at
  • Our models are reviewed for data integrity by our analysts shortly after earnings releases are imported: this level of real-time support is unusual for automated processes, and critical for small caps and international stocks or where deals have occurred. This is an additional layer of scrubbing in the context of a valuation model - a level of quality control that is unusual and adds significantly to the alpha of the product.
  • Fundamental valuation of any ETF or closed end fund on demand.
  • Support for non-US markets through ADR or local currency models.
  • Daily automatic downloads of new models. We can support the system with sophisticated data mining of fundamentals to support a variety of investment styles.
  • Corporate debt information and operating comparables are filled out on demand, and become a focus between earnings seasons. This is especially useful for fundamental researchers.

  •     Please feel free to write or call for valuations of tickers of your choice using our latest templates.
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