TRV Stock Analyzer v4.1 is finally here.
In this new version, we have worked on several major improvements to help users quickly determine investment opportunities. Here are some new cool features that come with it:
The ultimate aim for every investor is to buy a quality stock that is growing at a good value. Hence, we try to rate every stock based on these 3 criteria – Quality, Value and Growth. A total of 5 stars is given for each criterion.
Quality of a stock is determined by looking into its Piotroski score, quality of earnings, ROIC, CROIC and debt level. Value stars are given based on valuation ratios such as P/FCF, EV/EBIT, P/B and 7 valuation models which are calculated automatically by the analyzer. Growth stars are awarded based on current and long-term growth rate of revenue, earnings and cash flow.
The complete details on how the stars are awarded deserve a blog post for its own.
With the stars rating, you will get a feel of the stock fundamental immediately.
DCF Intrinsic Value Chart
DCF intrinsic value chart compares the current and past 10 years DCF valuations with the long term price chart. With this, you will immediately get a feel on how is the valuation of the stock. The stock is undervalued if the price is below the red line and overvalued if it is above it.
10 Years Price Chart
We have added a new 10 years price chart in the “Chart” tab, this will enable the user to compare various fundamental parameters with the price movement of the stock.
Discount rate is now calculated based on Quality Stars. Quality stocks will be given a lower discount rate. Discount rate is used in valuation models – DCF, DDM and EPV.
New Growth Rate Calculation
Determining the growth rate is always more of an art than science. In this new growth rate calculation, we are giving a higher weight on the latest growth rate. You will also be able to override the growth rate by keying your own growth rate on the yellow cell. This will override all the growth rate used in various valuation models.