Since country and industry factors have influences on security prices, we employ a proprietary multi-factor global valuation model that produces a ranking of countries from the most undervalued to the most overvalued. It is a useful cross check on the company valuation screens and has also been a good indicator of an overheating equity market. The model informs but does not direct the investment process.
Additionally, normal security price fluctuations can undervalue the cash flow or assets of a company. Using a series of global valuation criteria, our research team regularly screens a database of 40,000+ companies to produce a list of approximately 500 to 2,000 companies worldwide that appear to be the most undervalued. Screen criteria include the valuation of a company’s sustainable free cash flow relative to “Polaris’ Global Cost of Equity”, financial strength, market capitalization and liquidity, and margins.
Our professionals base their global valuation assessments off of a unique required rate of return or discount rate, known as “Polaris’ Global Cost of Equity”. This metric includes the long-term average return for global equity markets plus an active management premium plus a country risk premium. The investment professionals apply the discount rate to highly conservative estimates of future cash flows to determine the fair value of the investment.
Bottom-up fundamental research comprises the vast majority of time we spend in the investment process. We consider individual stock selection paramount to the process, and the primary contributor to performance. Fundamental global research covers financial analyses of companies including: in-depth review of financial statements, research on suppliers, customers and competitors and meetings with company management. Our analysts travel the world, assessing industry conditions, competitive advantages, profitability, operating and financial leverage and the quality of management — in an effort to identify new companies that will enhance the performance of our global portfolios and international portfolios.
We are able to dedicate substantial resources to investment decision making (based on our global valuation model and subsequent bottom-up research) due to our extensive use of technology, ultimately leveraging the time of our investment professionals. The proprietary intellectual property and technology we utilize in our investment process has been developed and continuously improved for more than 30 years. It is designed to automate repetitive and lengthy calculations and algorithms with speed and accuracy.
Polaris Capital Management LLC is an investment advisor registered with the U.S. Securities and Exchange Commission (SEC). Polaris' website provides general information regarding our business along with access to additional investment related information. Material presented is meant for informational purposes only. To the extent that you utilize any financial calculators or links in our website, you acknowledge and understand that the information provided to you should not be construed as personal investment advice from Polaris or any of its investment professionals. For additional information regarding our services, or to receive a hard copy of our firm's disclosure documents (Form ADV Part I and Form ADV Part II), contact client service. You may also obtain these disclosure documents online from the SEC Investment Adviser Public Disclosure (Firm CRD# 106278). (c) 2013-2024 Polaris Capital Management, LLC. All rights reserved.
IMPORTANT INFO: RETIREMENT CALCULATOR
The retirement calculator is a model or tool intended for informational and educational purposes only, and does not constitute professional, financial or investment advice. This model may be helpful in formulating your future plans, but does not constitute a complete financial plan. We strongly recommend that you seek the advice of a financial services professional who has a fiduciary relationship with you before making any type of investment or significant financial decision. We, at Polaris Capital, do not serve in this role for you. We also encourage you to review your investment strategy periodically as your financial circumstances change.
This model is provided as a rough approximation of future financial performance that you may encounter in reaching your retirement goals. The results presented by this model are hypothetical and may not reflect the actual growth of your own investments. Polaris strives to keep its information and tools accurate and up-to-date.
The information presented is based on objective analysis, but may not be the same that you find at a particular financial institution, service provider or specific product’s site. Polaris Capital and its employees are not responsible for the consequences of any decisions or actions taken in reliance upon or as a result of the information provided by this tool. Polaris is not responsible for any human or mechanical errors or omissions. All content, calculations, estimates, and forecasts are presented without express or implied warranties, including, but not limited to, any implied warranties of merchantability and fitness for a particular purpose or otherwise.
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