Compliance Account Management
There is not a single investment firm - large or small, local or international - that does research for every stock traded. So where can you turn to when a customer wishes to buy equity that you have never heard of? Luckily, StockPointer offers Risk Assessment Metrics that you can rely on, allowing you to advise your customer on risk on overs 7,500 companies.
Here are some of these metrics and a short description of each:
The Price / Intrinsic Value Ratio (P/IV)
This ratio is used to determine a stock's price compared to its
target value. Based on EVA, StockPointer calculates an
intrinsic value for a company's stock and compares it to its
price. A P/IV ratio of less than 1 indicates that the stock
price is lower than its intrinsic value. A P/IV greater
than 1 suggests an over-priced stock. Investors will usually
be looking for companies that show a P/IV valued
between 0.25 and 2.0 for investments. A stock whose P/IV rises
from a P/IV of less than 1 to a P/IV of 1 or greater could be
described as a "sell" since an investor could interpret it as
having reached its target price.
The Future Growth Value (FGV)
This value is an alternative way to see if a stock is over-priced or under-priced. The FGV is the portion of the company's market value that comes from the expected growth. A negative FGV (what investors would commonly be looking for) suggests a discounted stock price in relation to its current intrinsic value while a positive one shows a stock sold with a premium, likely based on an optimistic growth expectation. The FGV is a good way to represent the growth that the market expects from a company and therefore is an excellent measure of the volatility of a stock if that growth is not met.
The Business Model Stability
This indicator provides a measure of stability of the return on capital (ROC). A fluctuating ROC can suggest that a company is having difficulties in generating a ROC which an investor can count on for the future. It is also a good indication of the leadership that the company's product or service offering enjoys within its industry sector.
The Price Variation
This indicator shows the price variation over 12 months previous to the publication of the last financial statements.
The Debt Leverage
This ratio indicates the importance of the long-term debt compared to the capital invested in the company.
The Performance/Risk Analysis of the Peers
Presented as a comprehensive and easy-to-understand graph, the Peers' Performance & Risk Analysis compares the SP Performance and Risk scores of the 10 companies listed as the closest peers of the company being analyzed, from a sector or a sales' volume perspective. The performance score is showed along the y-axis while the risk score is represented along the x-axis. Companies with the best SPscore from StockPointer will appear at the top left-hand side of the chart, thus representing a low risk & high performance value, and making it easy to compare a company with any of its peers before considering an investment. Clicking on a company's symbol directly accesses that company's EVA ScoreCard for easy reference.
