The Value Point Analysis (VPA) Model is a stock evaluation tool that
allows the "everyday" stock market investor to INDEPENDENTLY analyze stocks,
thus not relying solely on the recommendations of others. To evaluate a stock's intrinsic
value, the VPA user is required to collect and enter a specified set of fundamental input
factors. These factors should be viewed as a check list that requires the user to consider
the relationship and interactions that these factors have on each other and the
interactive effect that they have on the stock's calculated intrinsic value, it's Value
Point.
The Value Point is not intended to be a mindless number that
automatically predicts stock prices, but should be viewed as a measure of intrinsic value
that reflects the quality of the assumptions associated with the
input factors at the time of evaluation. Thus, the VPA user is involved in both an
investment-educational and in an investment-evaluation process. The VPA exercise is an EduVestment
experience.
