Price Target Builder Automation
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Solution Overview
Problem
Current methods for determining and maintaining price targets in investment assets are labor-intensive, uncertain, especially for longer time frames, and lack efficient systems for continuous updating as market conditions change.
Innovation Solution
A computer-implemented system that generates and updates price targets using historic, forward-looking, and relative valuation metrics, applying configurable financial relationships and allowing for intrinsic and user-defined valuation models, with automatic updates based on changes in valuation metrics, enabling blended price targets and visualization of target changes over time.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Duration of action of moving object
If price targets are based on longer time frames, then investment return potential is improved, but uncertainty increases
Solution Approach 1:
The patent segments the price target determination process into multiple components: identifying valuation metrics, selecting financial relationships, computing price targets, and automatically updating based on data changes. This structured segmentation allows for systematic management of long-term valuation while reducing uncertainty through methodical analysis.
Solution Approach 2:
The system performs preliminary actions by pre-identifying relevant valuation metrics and financial relationships before computing price targets. This advance preparation enables more reliable long-term pricing by establishing a robust analytical framework beforehand, reducing uncertainty in future valuations.
2Measurement precision
If detailed valuation models are used, then price target accuracy is improved, but labor intensity increases
Solution Approach 1:
The patent implements self-service through automated identification of valuation metrics, automatic selection of financial relationships, and automated updating of price targets when underlying data changes. This automation maintains high accuracy through detailed modeling while eliminating manual labor, directly resolving the contradiction between precision and productivity.
Solution Approach 2:
The system replaces manual mechanical analysis with automated computational processes. Computer algorithms automatically identify valuation metrics, apply financial relationships, and update price targets, substituting human labor with machine-based processing while maintaining or improving accuracy through consistent application of valuation models.
3Adaptability or versatility
If price targets are manually maintained, then flexibility in adjustment is improved, but time consumption increases
Solution Approach 1:
The patent implements feedback mechanisms that automatically monitor changes in valuation metrics and financial data, triggering automatic updates to price targets. This feedback loop maintains flexibility by responding dynamically to new information while eliminating the time consumption of manual monitoring and adjustment.
Solution Approach 2:
The system ensures continuous useful action by automatically and continuously monitoring valuation metrics and updating price targets without interruption. This continuous automated process maintains adaptability to changing conditions while eliminating the time loss associated with periodic manual reviews and adjustments.
Data Source
AI summary
Systems and techniques for determining price targets are disclosed. The systems and techniques are designed to be a key workflow tool for investment managers and analysts, saving time and improving investment discipline. Using the disclosed systems and techniques, price targets may be generated based on historic, forward looking, and/or relative valuation metrics which are applied to actual or estimated financial data.