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METHODOLOGY
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MarketGrader’s research system is built around a 100
point grading scale that very precisely measures the fundamental
health of each of the companies in our coverage
universe. The score attained by each stock on this
100 point scale determines their buy, hold or sell rating.
| FINAL GRADE |
RATING |
| 60-100 |
BUY |
| 50-60 |
HOLD |
| 0-50 |
SELL |
This point system is in turn based on an intricate collection
of fundamental indicators, which are subdivided into the
following four categories: Growth, Value, Profitability and
Cash Flow.
Each one of these categories is composed of
six unique indicators–for a total of 24 fundamental indicators—
which vary according to the type of company
being analyzed.
Each indicator is assigned a grade of A+
to F based on MarketGrader’s daily calculations. The
tables on the right column illustrate a list of the indicators
used across different industries.
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General
| Growth |
Value |
Profitablity |
Cash Flow |
| Market Growth LT |
Capital Structure |
Asset Utilization |
Cash Flow Growth |
| Market Growth ST |
P/E Analysis |
Capital Utilization |
EBITDA Margin |
| Growth Potential |
Price/Book Ratio |
Operating Margins |
Debt / Cash Flow Ratio |
| Relative Price Strength |
Price/Cashflow Ratio |
Relative Margins |
Interest Coverage Capacity |
| Earnings Momentum |
Price/Sales Ratio |
Return on Equity |
Economic Value |
| Earnings Surprise |
Market Value |
Quality of Revenues |
Retention Rate |
Banks
| Growth |
Value |
Profitablity |
Cash Flow |
| Market Growth LT |
Capital Ratio |
Net Interest Margin |
Cash Flow Growth |
| Market Growth ST |
P/E Analysis |
Net Loan Ratio |
EBITDA Margin |
| Growth Potential |
Price/Book Ratio |
Operating Margins |
Loss Reserve Ratio |
| Relative Price Strength |
Price/Cashflow Ratio |
Relative Margins |
Interest Coverage Capacity |
| Earnings Momentum |
Price/Sales Ratio |
Return on Equity |
Interest ratio |
| Earnings Surprise |
Market Value |
Quality of Revenues |
Retention Rate |
REITS & Utilities
| Growth |
Value |
Profitablity |
Cash Flow |
| Market Growth LT |
Capital Structure |
Yield Analysis |
Cash Flow Growth |
| Market Growth ST |
P/E Analysis |
Capital Utilization |
EBITDA Margin |
| Dividend Growth |
Price/Book Ratio |
Operating Margins |
Debt / Cash Flow Ratio |
| Relative Price Strength |
Price/Cashflow Ratio |
Relative Margins |
Interest Coverage Capacity |
| Earnings Momentum |
Price/Sales Ratio |
Return on Equity |
Yield Analysis |
| Earnings Surprise |
Market Value |
Quality of Revenues |
Dividend Yield |
Insurance
| Growth |
Value |
Profitablity |
Cash Flow |
| Market Growth LT |
Capital Structure |
Value of Premiums |
Cash Flow Growth |
| Market Growth ST |
P/E Analysis |
Capital Utilization |
EBITDA Margin |
| Growth Potential |
Price/Book Ratio |
Operating Margins |
Debt / Cash Flow Ratio |
| Relative Price Strength |
Price/Cashflow Ratio |
Relative Margins |
Interest Coverage Capacity |
| Earnings Momentum |
Price/Sales Ratio |
Return on Equity |
Economic Value |
| Earnings Surprise |
Market Value |
Quality of Revenues |
Retention Rate |
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