System and method for providing customizable investment tools

• US 7,672,889 B2
• Filed: 07/15/2004
• Issued: 03/02/2010
• Est. Priority Date: 07/15/2004
• Status: Active Grant

• Current Assignee: Kent F. Brooks
• Original Assignee: Kent F. Brooks
• Inventors: Brooks, Kent F.
• Primary Examiner(s): Patel; Jagdish N
• Assistant Examiner(s): POE, KEVIN T
• Application Number:
  US10/892,611
• Publication Number:
  US 20060015425A1
• Time in Patent Office: 2,056 Days
• Field of Search: 705/36
• US Class Current: 705/36.00R
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/10 Tax strategies

Abstract

Computer-implemented methods and systems to help investors determine the fair value and ratings of assets (such as equity or debt instruments, etc.), and thereby make better informed investment decisions, through: automatically consolidating selected asset historical performance, forecasting and rating information; automatically computing asset valuations based on default and/or customized valuation parameters; and automatically determining asset under or over valuation.

Claims

1. A computer-implemented method, comprising:

(a) determining, by a computing device, an estimated present fair value of an asset by consolidating selected

(i) historical performance data regarding the asset,

(ii) forecast information regarding the asset, and

(iii) valuation information provided by one or more investment information service providers, said valuation information regarding the asset,

all according to;

(x) fair value estimation processes that utilize one or more of financial information concerning the asset, financial forecasts concerning the asset, presently valued cash flows concerning the asset, and

(y) valuation parameters aligned with an investor profile; and

(b) presenting the estimated present fair value in a format reflecting an over/under valuation of the asset as compared to its price.

2. The computer-implemented method of claim 1, wherein the estimated present fair value is determined according to one or more valuation models.

3. The computer-implemented method of claim 2, wherein the estimated present fair value is determined according to those of the one or more valuation models selected by a user.

4. The computer-implemented method of claim 1, wherein the estimated present fair value is determined and presented in response to a single user interaction with a computer system.

5. The computer-implemented method of claim 4, wherein the single user interaction with the computer system comprises a selection of a user interface element presented in a graphical user interface.

6. The computer-implemented method of claim 5, wherein the format in which the estimated present fair value is presented comprises a quick valuation quote which includes an identification of the asset, its present price and the estimated present fair value.

7. The computer-implemented method of claim 5, wherein the format in which the estimated present fair value is presented comprises a detailed valuation quote which includes an identification of the asset, its present price and at least a summary of parameter values used to compute the estimated present fair value.

8. The computer-implemented method of claim 5, wherein the format in which the estimated present fair value is presented comprises a portfolio valuation summary of which the asset is one component.

9. The computer-implemented method of claim 2, wherein the investor profile comprises one or more of:

risk premium preferences and tax treatment preferences.

10. The computer-implemented method of claim 1, wherein the estimated present fair value is determined according to a valuation model in which a present value for the asset at a risk-adjusted rate of return is computed using (i) an expected future price of the asset upon expiration of a holding period, and (ii) a series of individual dividend cash flows for the asset expected during the holding period, (iii) less a present price of the asset.

11. The computer-implemented method of claim 1, further comprising evaluating the estimated present fair value of the asset through comparisons with fair values of other assets and presenting evaluation results in accordance therewith.

12. The computer-implemented method of claim 11, wherein the evaluation results are presented as a percentile position relative to a grouping of similar assets.

13. The computer-implemented method of claim 11, wherein the evaluation results are presented in relation to a distribution of results obtained for a grouping of similar assets.

14. The computer-implemented method of claim 1, further comprising comparing the estimated present fair value of the asset as determined according to a first valuation model with other fair values for the asset determined according to other valuation models and presenting results for each of the present fair value determinations.

15. The computer-implemented method of claim 1, further comprising determining an historical fair value for the asset using historical performance information for the asset as one or more inputs to a valuation model and presenting the historical fair value as so determined.

16. The computer-implemented method of claim 15, wherein the valuation model used to determine the historical fair value is also used to determine the present fair value of the asset.

17. The computer-implemented method of claim 1, further comprising presenting a rate of return distribution graph configured to indicate a rate of return distribution for an entire asset class and annotated to reflect an expected rate of return for the asset based on the estimated present fair value.

18. A method for generating a user interface for a computer system, the method comprising:

generating one or more screens for display via the computer system, the screens presenting an estimated present fair value of an asset, the estimated present fair value computed, by a computing device, according to a valuation model that consolidates selected

(i) historical performance data regarding the asset,

(ii) forecast information regarding the asset, and

(iii) valuation information provided by one or more investment information service providers, said valuation information regarding the asset,

all according to;

(x) fair value estimation processes that utilize one or more of financial information concerning the asset, financial forecasts concerning the asset, presently valued cash flows concerning the asset, and

(y) valuation parameters aligned with an investor profile; and

displaying the one or more screens at the computer system.

19. The method of claim 18, wherein the valuation model further determines an over/under valuation of the asset as compared to its price.

20. The method of claim 18, wherein the estimated present fair value is presented in a format reflecting a comparison with an overall population of similar fair values for similar assets.

21. The method of claim 20, wherein the estimated present fair value is presented in a format reflecting an over/under valuation of the asset as compared to its price.