Valuations.csv results #2
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I had another query. How does your script to determine fair valuations use alone book value and annual sales to arrive at a fair value for the stock? Like does it have some corelation with something else which isn't made public? |
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THe two parameters book value and sales are not connected for my algorithm directly to spot stock's fair value. The annual sales part can be considered similar to the marketcap-annual sales query that i cleared in your previous question. And, for the book value parameter, without complicating it for you in financial terms, a decent stock which is fundamentally sound (based on n parameters not just 1 or 2) always trade over its book value. These two parameters arecombined in the result to apply them as a filter in an attempt to spot better investment opportunities. Hope this answers your query :) |
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So basically, just to confirm, the two parameters are not connected to their functioning but used together to check if they are together producing better results for the user? Right? |
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Yep, exactly! |
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THe two parameters book value and sales are not connected for my algorithm directly to spot stock's fair value. The annual sales part can be considered similar to the marketcap-annual sales query that i cleared in your previous question. And, for the book value parameter, without complicating it for you in financial terms, a decent stock which is fundamentally sound (based on n parameters not just 1 or 2) always trade over its book value. These two parameters arecombined in the result to apply them as a filter in an attempt to spot better investment opportunities. Hope this answers your query :)