Virtually every investment requires some sort of valuation analysis, and the 3 statement financial model plays a central role. A well-built model can help gauge the true health of a company in terms of its profitability, liquidity and sustainability. Take Apple for example, a company that is undoubtedly popular and immensely successful in churning out new products every year that end up on top of most consumers’ wish lists. However, in order to justify an investment in Apple, one has to ask several key questions: “Is the stock fully valued?” or “What is Apple’s ability to continue to invest in a way that will yield reliable profits in the future?” Answering these questions require data, an understanding of financial statements, and a pulse on the market.
Gathering the relevant data, putting it together in the form of a model, and making sure the hundreds of figures that impact the final answer all line up, requires hours of work each and every time and advanced knowledge of accounting and financial concepts.
Founders Rishab Dugar and Namit Setia developed Novo34 to automate the financial modeling process, quite possibly the most tedious and aggravating part of any financials analyst’s job.
The Novo34 model adopts an innovative approach to reduce the amount of time and effort required on the part of the user. Novo34 is the recipient of Yale University’s Morris and Miriam Pozen award for its ability to generate models in under 1 minute.
The time savings, together with improvements in accuracy and detail allow for a very scalable product that millions of financial professionals and individual investors can user to become hyper productive, and highly adept at solving tough problems via reliable, automated financial modeling.
The Novo34 program has the ability to change the way people do financial analysis today. Imagine searching for a company ticker in Google Finance (or any other financial website), and instead of getting basic stock price and historical financial information, one also gets a projection model instantaneously. The Novo34 team’s ambition is far-reaching, and they have the skills set (world class expertise in computer science merged with years of bulge bracket investment banking experience), strong evidence for the product’s appeal (hundreds of users added each week), and the scalability of an Intellectual Property driven, asset light 21st century business.