Stock Ranking Criteria

Embed Size (px)

DESCRIPTION

Portfolio construction

Citation preview

FactorBasis of Ranking

Profitability

)/2

Deviation

MV%-Intrinsic Value%

Industry

Best Industry=0.9

Least Attractive Industry=0.1(According to Industry Analysis industry is catagorised)

Historical profitability /Historical Dividend

Growing EPS/dividend= 0.6

Stable= 0.4

Volatile =0.2

Declining =0

Institutional Holding

0-5% = 0.2

6-10% = .4

11-15% = 0.6

16 20% = 0.8

21 25% = 1

26 -30% = 1.2

31-35% = 1.4

36-40% = 1.6

41 -45%= 1.8

More than45 % =2

Insider Holding

0-5% = 0.2

6-10% = .4

11-15% = 0.6

16 20% = 0.8

21 25% = 1

26 -30% = 1.2

31-35% = 1.4

36-40% = 1.6

41 -45%= 1.8

More than45 % =2

MGT qualityNo information / bad = 0

Moderate = 0.25

Good = 0.5

Distinctive competencyNO distinctive competency = 0

Moderately strong distinctive competency = 0.50

Strong distinctive competency = 1

Insider Sales

Selling Trend = -0.50

No trend = 0

Purchase Trend = 0.5