T-model
Connects fundamentals with investment return / From Wikipedia, the free encyclopedia
"T model" redirects here. For the automobile, see Ford Model T. For the distribution model similar to Normal distribution, see Student's t-distribution and Student's t-test.
In finance, the T-model is a formula that states the returns earned by holders of a company's stock in terms of accounting variables obtainable from its financial statements.[1] The T-model connects fundamentals with investment return, allowing an analyst to make projections of financial performance and turn those projections into a required return that can be used in investment selection.