Valuation and Ranking

We do not stop at the ‘raw’ data feed.  Instead, our computer programs automatically generate additional data for analysis.  One of the most interesting and important processes is the computation of a dollar value for every stock in our database for which there is adequate data for the calculation.  We use a variety of valuation models, including the edwards-bell-ohlson model, and then assign an average valuation based upon the computation results.

Once all of the raw data and computed data sets are assembled, we assign two rankings for every parameter for every stock: the first shows how the parameter rates relative to the market as a whole and the other how the parameter rates relative to the stock’s respective industry.  As an example, these rankings could show that a price-to-earning ratio of 30 is high relative to the market as a whole but low relative to the industry of the stock under consideration.

The computed stock rankings are displayed as colorful ranking bars; in general, green means good, red means bad.