What Are OG Models
OG models refer to foundational or original frameworks used in finance, business, and quantitative analysis. They are the earliest widely adopted approaches that later inspired more advanced variations. In practice, OG models can mean simple valuation methods, basic risk metrics, or classic economic frameworks still referenced today.
Why OG Models Matter
OG models matter because they provide a transparent, easy-to-understand baseline for decision-making. Analysts and investors use them to benchmark performance, test assumptions, and compare results against more complex tools. When an OG model is well documented, it helps teams communicate ideas clearly and audit logic more effectively.
Common Examples of OG Models
Common examples include discounted cash flow analysis, the Capital Asset Pricing Model, and basic ratio-based valuation. These approaches rely on publicly available data and straightforward math. Many modern tools build on these OG models, adding layers of complexity while keeping the original structure visible.
For a broader overview of foundational financial models, see this explanation of common model types at Investopedia.
