Developed by James O'Shaughnessy, the VC score uses five valuation ratios. Another way to determine the effectiveness of a company's distributions is by looking at the Shareholder yield (Mebane Faber).
Checking in on some valuation rankings, Suominen Oyj (HLSE:SUY1V) has a Value Composite score of 18. The VC score is displayed as a number between 1 and 100. The lower the Q.i. value, the more undervalued the company is thought to be. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is now sitting at 88. It is highly important to make sure all the research is done on a stock, especially if the investor is heavily weighted on the name. A profitable company may decide to do various things with the profits. Becoming educated about the stock market before tackling the beast might assist the individual investor in many ways. Often times, investors may be challenged with trying to figure out the proper time to sell winners or let go of losers.
Trais Co., Ltd. (KOSDAQ:A052290) has a current MF Rank of 13503. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The Earnings Yield for Paragon Union Berhad (KLSE:PARAGON) is 0.016804. The hope is that the company does very well and becomes highly profitable. Altium Limited has a current ERP5 Rank of 6968. The ERP5 Rank is an investment tool that analysts use to discover undervalued companies. This ranking uses four ratios. The ROIC 5 year average is 0.614267 and the ROIC Quality ratio is 1.757341. In general, companies with the lowest combined rank may be the higher quality picks.
Watching some historical volatility numbers on shares of Livehire Limited (ASX:LVH), we can see that the 12 month volatility is presently 50.546900. The 6 month volatility is 56.215800, and the 3 month is spotted at 50.579100. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.
We can now take a quick look at some historical stock price index data. This is calculated by taking the earnings per share and dividing it by the last closing share price. A score of nine indicates a high value stock, while a score of one indicates a low value stock. A ratio lower than one shows that the price has decreased over that time period. Similarly, investors look up the share price over 12 month periods. Narrowing in a bit closer, the 5 month price index is 1.32680, the 3 month is 1.16266, and the 1 month is now 1.17613.
The Piotroski F-Score is a scoring system between 1-9 that determines a firm's financial strength. The score helps determine if a company's stock is valuable or not. Investors may also use shareholder yield to gauge a baseline rate of return. At this point in time, investors may be a bit more cautious with stock selection. On the other end, a stock with a score from 0-2 would be viewed as weak. The company has an FCF score of 2.710886. The specifics of the variables and formula can be found in the Beneish paper "The Detection of Earnings Manipulation".
Investors may be interested in viewing the Gross Margin score on shares of GBST Holdings Limited (ASX:GBT).
The current FCF quality score is -0.26959. The score is also determined by change in gross margin and change in asset turnover. (NYSE:CAL) is 14. A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company.
Shifting gears, we can see that Altium Limited (ASX:ALU) has a Q.i. Value of 35.00000. The Q.i. This number is calculated using the geometric average which provides the typical value of dividend growth over the specified period using the product of their values. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. The goal of the Q.i. The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity.