HOLT TMT "AI Boom, Bust, or Both? Navigating the Next Phase of the Cycle..."

Research evidence excerpt

HOLT TMT "AI Boom, Bust, or Both? Navigating the Next Phase of the Cycle..."

Valuation Method and Risk Statement

The HOLT methodology does not assign ratings or a target price to a security. It is an analytical tool that involves use of a set of proprietary quantitative algorithms and warranted value calculations,

collectively called the HOLT valuation model, that are consistently applied to all the companies included in its database. The HOLT valuation model is a discounted cash flow model. Third-party data

(including consensus earnings estimates) are systematically translated into a number of default variables and incorporated into the algorithms available in the HOLT valuation model. The source financial

statement, pricing, and earnings data provided by outside data vendors are subject to quality control and may also be adjusted to more closely measure the underlying economics of firm performance.

These adjustments provide consistency when analyzing a single company across time, or analyzing multiple companies across industries or national borders.

The default scenario that is produced by the HOLT valuation model establishes a warranted price that represents the expected mean value for a security based upon empirically derived fade algorithms that

forecast a firm's future return on capital and growth rates over an extended period of time. As the third-party data are updated, the warranted price updates automatically. A company’s future achieved

return on capital or growth rate may differ from HOLT default forecast. Additional information about the HOLT methodology is available upon request.

CFROI, CFROE, HOLT, HOLT Lens, HOLTfolio and “Powered by HOLT” are trademarks or registered trademarks of UBS in the United States and other countries.