UBS: Fast Take: HOLT Consumer "Nike (NKE) updated with new annual data in..."

Research evidence excerpt

UBS: Fast Take: HOLT Consumer "Nike (NKE) updated with new annual data in..."

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. HOLT is a corporate