Stocks valuation method
The fundamental parameters that we evaluate to calculate the overall rating of companies
-
01.
Quarterly earnings per share (EPS) of the last reporting quarter should be at least 50% higher than the previous quarter of the same period
-
02.
The average profit per share of the last two quarters is at least 40% compared to the previous quarters of the same period
-
03.
Earnings growth per share should dynamically grow the last 5-10 quarters
-
04.
Quarterly earnings per share of the last 4-5 quarters should be greater or at the level of theprojected profit of Wall Street
-
05.
The projected profit in the next quarter should exceed the profit of the current quarter or be at the level with it
-
06.
Annual profit growth rate is 25% or more
-
07.
Quarterly revenue (income) of the last reporting quarter should be at least 40% higher than the previous quarter of the same period
-
08.
The average of the revenue of the last two quarters is at least 35% compared to the previous quarters of the same period
-
09.
The earnings growth of quarterly revenue should grow dynamically in the last 5-10 quarters
-
10.
Quarterly revenue of the last 4-5 quarters should be greater or at the level of the projected profit of Wall Street
-
11.
The projected revenue of the next quarter should exceed the profit of the current quarter or be at the level with it
-
12.
P / E Ratio is less than 25
-
13.
The annual flow of finances (cash flow) is more than 20% of the actual profits per share
-
14.
EPS rating (from MarketSmith) from 92 to 99, the higher the better (99 – the company surpasses all others by current profit and by three-year profit per share
-
15.
Company management must have a 3% of the shares or more
-
16.
The company's IPO was held no more than 3 to 5 years ago
-
17.
The fragmentation of shares we regard as an additional negative factor
-
18.
We regard the repurchas e of shares as an additional positive factor
-
19.
The share should be the leader of one of the best industrial groups (from 80 to 99 by MarketSmith)
-
20.
Institutional support rating "A" (by MarketSmith)
-
21.
New Product. The importance of the new product or the new management should be supported by the technical characteristics of the shares.