WIC has been working to expand our in house modeling to better quantify investment opportunities that we explore and our current holdings.
Recently Whitman has decided to push for more sustainable investing by incorporating ESG analysis into the schools endowment investments. As a student run branch of the endowment, it is important to highlight ESG values within WIC’s educational process and investments. We have created a standardizing process that yields quantifiable ESG ratings. These ratings are then used in Cost of Capital adjustments, creating an ESG adjusted DCF which is weighted into our final valuation for companies we are analyzing.
The Discounted Cash Flow model and Dividend Discount model are staple elements of quantifying investment opportunities for financial analysis. As valuation models are an essential part of our stock pitches, we have created a standardized model which is easy to use and easy to understand to allow for increased accessibility by our member base. Similarly with our ESG adjusted DCF, each model is weighted into our final valuation.
WIC Risk Model
Currently under construction, the WIC Risk Model aims to properly manage and account for the risk within our entire portfolio. We will be tracking internal correlations, Sharpe and Sortino ratios, beta and volatility contributed by each sector as well as portfolio Value at Risk. Upon completion the model will be linked here and shared with our member base to widen the understanding of portfolio management.