We’re making a stock evaluation score to beat Magic Formula, Shareholder Yield, Acquirer’s Multiple and Fama-French.
We might fail.
But we’ll learn something in the process and aim to find a system that adds historical performance and / or future robustness to the above.
Check in later to see the progress.
Step1:
– Select the most reliable financial reporting data points that approximate real Value Creation for the shareholders among the widest variety of business types
Step2:
– Run historical performance analysis of the Value Creation Score investment strategy vs the other most well-known quant strategies over the last 20 years – long term historical data is very valuable but accounting principles, practices, tricks and hacks have been evolving meaning that a strategy that works on average over the last 100 years might have stopped outperforming 20 years ago and is not ‘owed’ a recovery
Step3:
– Publish annual Value Creation Scores for all major markets, helping identify the companies that deserve extra capital, and turn the research focus toward Value Creation Yield