Elevate Your Investment Strategy with Our Comprehensive Custom Metric “The Shadlee” Navigating the stock market efficiently requires precise tools that can swiftly evaluate a stock’s financial health and value. That’s why we’ve developed a dynamic custom metric in StockRover, designed to give investors like you a multifaceted view of a stock’s potential. Here’s a breakdown of our innovative metric, which quantitatively assesses various fundamental indicators to score stocks: Debt to Assets: We start by examining the debt-to-assets ratio. If a stock has a ratio below 0.50, it scores a point, signaling lower leverage and a healthier financial posture. Price to Earnings (P/E): This metric is crucial for spotting undervalued stocks. A P/E ratio under 14 earns a stock another point, suggesting it might be priced below its earnings growth potential. Price to Sales (P/S): With a threshold set at 5, stocks scoring under this ratio gain a point, indicating reasonable valuation against sales figures. Shiller PE (CAPE): A Shiller PE below 16 points towards potential undervaluation against the average of cyclically adjusted earnings over the past decade, granting another point. Price/Cash Flow (PCF): A PCF ratio below 10 is ideal. It scores a point for indicating that the stock is generating adequate cash relative to its market price. Quick Ratio: This liquidity measure adds a point for stocks with a quick ratio above 1.5, reflecting strong short-term financial resilience. Price to Graham Number: A refined indicator of intrinsic value, if a stock’s price is below its Graham Number, it scores 0.09 points. This subtle scoring highlights stocks potentially undervalued per Benjamin Graham’s conservative valuation criteria. Our custom metric totals up the points from these conditions, offering a comprehensive score that helps determine a stock’s attractiveness. This systematic approach aids investors in quickly sifting through financial noise to pinpoint stocks that align with stringent criteria of financial soundness and value. Whether you’re a seasoned investor or just starting out, integrating this custom metric into your StockRover dashboard will empower your investment decisions, enabling you to uncover hidden gems in the market. Leverage this tool to enhance your portfolio by focusing on stocks that meet high standards across multiple financial metrics. Reply
Hello Shad, An excellent example of using an equation to create your own rating. We’ve shown your equation below: The Shadlee Evaluate stocks efficiently with our simplified scoring system in StockRover: Best Score=6.09 Worst Score=0 (case when “Debt / Assets [Now] ” < 0.50 then 1 else 0 end) + (case when “Price / Earnings [Now] ” < 14 then 1 else 0 end) + (case when “Price / Sales [Now] ” < 5 then 1 else 0 end) + (case when “Shiller PE [Now] ” < 16 then 1 else 0 end) + (case when “Price / Cash Flow [Now] ” < 10 then 1 else 0 end) + (case when “Quick Ratio [Now] ” > 1.5 then 1 else 0 end) + (case when “Price to Graham Number [Now] ” < 1.00 then 0.09 else 0 end)
