We’re always working to give clients the best fundamental data and models in the world. Today, we are excited to announce enhancements to our quarterly and Trailing Twelve Month (TTM) models as well as our Average Invested Capital calculation. These enhancements improve how we:

  1. Handle the realities of poor, limited, or missing disclosures in financial filings
  2. Calculate Average Invested Capital
  3. Deliver more robust backtest data sets and models for the 10,000+ stocks, ETFs and mutual funds we cover.

Disclosures in quarterly filings are radically worse than disclosures in annual filings. For example, in 10-Qs, companies rarely provide adequate disclosures for operating leases, pensions, employee stock options, taxes, hidden expenses and income, reserves, deferred compensation, acquisitions, and many other items needed to calculate NOPAT and invested capital with the consistency and accuracy we require.

Improving our ability to identify and model inadequately disclosed – and undisclosed – values further enhances the superiority of our data and models.

No other research firm works harder or smarter to bring you the best fundamental data and valuation models.

The Analyst Note: “Updated Based on Model Enhancement” will appear if this update causes the Overall Rating to change for any active or inactive stocks we cover.

Please do not hesitate to reply with any questions.

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This article originally published on May 28, 2019.

Disclosure: David Trainer and Kyle Guske II receive no compensation to write about any specific stock, style, or theme.

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