A top Wall Street bank analyst says our analysis is superior.

Get the white paper


Key quotes about our “VBA” analysis:

Better valuation models:

  • “New Constructs leverages Robo-Analyst technology to gather all of the data needed to accurately calculate return on invested capital across most US companies and some international companies, which allows for analysis within and across various sectors. The result is a valuation model that yields superior results relative to many other methods that ignore accounting footnotes.” – Page 5, 1st para.
  • “The process helps reverse overstated earnings and understated capital. This is based on a unique data set provided to us by New Constructs. VBA matters. VBA explains far more value than a traditional price-to-book regression by industry…” – Page 2, 1st para.

An improvement over traditional metrics:

  • “Value Based Analysis (VBA) [New Constructs’ Research or Robo-Analyst] improves the traditional ROE to price-to-book analysis by translating accounting value to estimated economic value.” – Page 1, first bullet
  • “VBA adjusts ROE by standardizing accounting across the S&P 500 to estimate return on invested capital (ROIC). It helps. The r-squared between ROIC and adjusted price-to-book value is far better than under the traditional ROE to price-to-book value approach…” – Page 1, second bullet

A more comparable dataset across industries:

  • “In order to level the playing field across industries, the New Constructs’ model makes several key adjustments.” ­– Page 5, 1st para.
  • “New Constructs provides a unique data set that allows a level playing field by eliminating these accounting differences.” – Page 5, 3rd para.
Get the white paper

    2 replies to "Top Wells Fargo Analyst Leverages Our Best-in-Class Analytics"

    • gene goodwin

      what a fantastic niche analytical model. i can definitely see the “edge”. BUT>ever since 2008 and massive QE – everything AND all the current generation algos slamming the markets back and forth, i’m guessing that your “edge” is only a very small variable (if at all) in the market moving algos feeding on so many other variables.
      i’m sure your model would have been a lot more useful pre 2000 when the market actually cared more about the financial sheets and future growth projections of companies.

      my comment is not meant as a slam, but rather a critical thinking variable in these crazy markets…..i admit i have not been through your entire website for performance figures, etc…but i am still very interested in the comparison of recent data versus older performances of your model. kindly hit me back with comments and your thoughts on my thought. thanks.

    • Matt Shuler


      Thanks for the comment. Don’t take our word for it, take a look at what professors from Harvard Business School and MIT Sloan say about our data. My favorite quote is, “Trading strategies that exploit cross-sectional differences in firms’ transitory earnings produce abnormal returns of 7-to-10% per year.” You can read more about it here: https://www.newconstructs.com/evidence-on-the-superiority-of-our-earnings-data/.

Leave a Reply

Your email address will not be published.