About Us


Our valuation methodology is based on Cash Flow Returns on Investments. We provide the financial numbers and a platform for you to value companies.

ROCGA’s systematic DCF valuation engine lets you direct the narrative and assumptions that drive valuation. You model the company and back-test the assumptions before forecasting forward.

Data: ROCGA Research has a dedicated team of data analysts to ensure the quality of data is of the highest standards. Our process of checks is rigorous and includes comparing fundamental data points against the company’s annual reports.

Current tools: Valuation tool, charting page, watchlists, and screens with about 100 core and 600 derived fundamental data points.

Current coverage: As of December 2024 - 1,200+ companies - Mostly in North America and Europe

We are continuously adding companies and plan to develop more tools.

Company coverage falls into two categories

ROCGA Enabled Companies

Full Analysis and a vast range of ratios and charts.
1,200+ companies

Ticker Enabled Companies

A handful of companies with some basic data: Reported Numbers, Fundamentals, basic ratios, and charts.

Our Method


Cash Generation

Investors generally rely on accrual accounting methods to make investment decisions. These methods are easy to understand and are readily available. However...

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Investors generally rely on accrual accounting methods to make investment decisions. These methods are easy to understand and are readily available. However, there may not be a clear correlation between the required valuation measures. Accrual measurements are also subjective and may vary between companies.

ROCGA only considers a company’s cash generating ability by using the accrual accounting information and converting it into a gross cash number. The aim is to neutralise subjectivity from the reported financial results and evaluate it from a wealth creation and valuation perspective.

A company’s cash generating ability, the Gross Cash number =

  • + Adjusted Net Income
  • + Depreciation And Amortization
  • + Operating Lease
  • + Interest Costs
  • + Net Pension Interest Cost
  • ± Other Adjustments

Total Cash Generating Assets

In order to bring all companies on an equal footing for valuation, we make similar adjustments to the balance sheet items. Non-depreciating assets...

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In order to bring all companies on an equal footing for valuation, we make similar adjustments to the balance sheet items.

Non-depreciating assets =

  • + Net Current Assets
  • + Other Investments
  • + Land

Depreciating assets =

  • + Inflation Adjusted PPE
  • + Inflation Adjusted Intangible Assets
  • + Capitalized Operating Lease
  • + Goodwill


Total Cash Generating Assets = non-depreciating assets + depreciating assets

Valuation

Once we have the gross cash and total invested capital, the next stage is to calculate the Returns on Cash Generating Assets. This is the internal rate of return calculation...

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Once we have the gross cash and total invested capital, the next stage is to calculate the Returns on Cash Generating Assets. This is the internal rate of return calculation. A simple example is shown below.


The total number of payments, i.e. the asset life: 10yrs

Payment each period, i.e. gross cash flow: 75

Initial investment, i.e. in Total Cash Generating Assets: -500

Future value or cash release, i.e. non-depreciating assets: 100

These give us an IRR (ROCGA) of 10%.

ROCGA provides a good measurement of the underlying economics of the company. These calculations are more objective and provides an outlook into the company’s ability to create value over time.

We use a systematic discounted cash flow method to value the company.

How To Model A Company

We now have all the components required for our valuation model. The final few steps require making critical assumptions regarding the company. This is where you come in…

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We now have all the components required for our valuation model. The final few steps require making critical assumptions regarding the company. This is where you come in…

  • Is the company in a cyclical industry / are the returns cyclical?

  • What is the strength of the business? Does it have a strong franchise/brands or does it produce generic products.

  • What life-cycle stage is the company at? Are returns increasing, decreasing or relatively stable?

The final stage requires entering forecasts into the system.

How To Value A Company

We are now ready to forecast the share price. Enter, estimates for eps, dps and growth and our algorithms will do the rest....

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We are now ready to forecast the share price. Enter, estimates for eps, dps and growth and our algorithms will do the rest.


Your model assumption can also be back-tested.

A high correlation between the calculated value and the historical share price would indicate most of the market assumptions have been captured.

What if the dynamics of the industry/company changes? You flex the model, do sensitivity analysis and examines what-if scenarios.

RETURN ON CASH GENERATING ASSETS

Our method is based on Cash Flow Returns on Investment as fleshed out by Bartley Madden in his book CFROI Valuation: A Total System Approach to Valuing the firm.

We take reported financial information to calculate gross cash and total cash generating assets. Returns On Cash Generating Assets (ROCGA) is an economic performance measure and helps compare companies on a like-for-like basis. It also provides an objective view of a firm’s ability to create wealth.

VALUABLE INSIGH INTO COMPANY PERFORMANCE

Our proprietary, unbiased and interactive valuation tool helps you to model companies and back-test your assumptions.

Changing market scenarios, including disruptors, company specific or macro factors can be incorporated in your modelling.

We are adding more features and functionalities on a monthly basis. Very soon, we will introduce screening, watchlists, factor investing…

Rocga Model


Price Info

Pricing will depend on our stage of development. More details can be found on our pricing page.

Our core valuation engine is one of the most advanced available. We have a significant number of companies in our database for you to analyze. More tools & features are also planned.

Our terms and conditions still apply.

Enterprise solutions are available on request.