P/E Analysis & Forecasting

DEMARCHE P/E ANALYSIS HELPS YOU ANSWER THE QUESTION: IS OUR P/E MULTIPLE WHAT IT SHOULD BE?

The DeMarche Factor Model has identified the characteristics that drive P/E and quantified the impact that each has on P/E multiples. This enables us to measure your company’s exposure to these factors. Armed with this information you can explain your stock’s P/E relative to your competitors for capital or your peers and develop strategies for enhancing your multiple.

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From the basics of valuation, we know that your company’s expected earnings growth rate and its discount rate drive P/E. DeMarche provides an in-depth analysis of the factors that affect both of these areas and compares your stock to a universe of ‘clone’ companies that closely resembles your company. (DeMarche Clones are different from your peers and are your true competitors for capital.)