Friday, May 09, 2008

The Valuation Model is an illustration of a methodology (tool) used to determine “estimated intrinsic value” for common stocks to help investors understand Diamond Hill’s process for selecting securities. The Valuation Model is a simplified version of the actual model used by investment analysts at Diamond Hill Investments to assess the value of common stocks. Model results are heavily dependent on the various inputs which are subject to change over time with changes in market conditions. The results of the model represent estimates and should not be relied upon for the selection of securities. The estimates or other information generated by the Valuation Model regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results.

Valuation Model Introduction