subject: A Quick Review of How VectorVest Evaluates Stocks [print this page] A Quick Review of How VectorVest Evaluates Stocks
Exactly how Vector Vest Operates:
VectorVest is the system you require to make Speedy, Wiser, and Much better stock market conclusion for far better earnings. VectorVest monitors more than 18,300 stocks each day, calculating two measures of value for each stock in our database. The first measure is Value, a measure of a stock's present worth. It factors in discounted cash flows, earnings, earnings growth, profitability, inflation and interest rates. The second strategy is identified as Relative Value (RV); it identifies a stock's long-term price appreciation potential.
A stock's value enables you to decide on if a stock is right now under or over-valued. Relative Value (RV) is much more than a simple price to value comparison. It is computed from an evaluation of predicted cost appreciation three years out, AAA Corporate Bond Rates, and risk.
RV, RS AND RT Can Offer You AN Edge
First: It Commences with RV rating of 1.00. Anything greater than that is worth looking at. Anything below 1.00 is a red flag. Stocks with ratings more than 1.00 possess above average appreciation possibilities. If it were below average, you'd be better off in AAA corporate bonds. But this is simply the starting.
Next: We want to calculate Relative Safety (RS). This measure tells you how stable a stock is compared to other investments. Again, if the stock is over 1.00 it's actually less risky and a lot more predictable than other stocks. If it's risky and unpredictable the rating will be below 1.00.
After that: We measure Relative Timing (RT). How does the short-term price performance look? If it's the cost performance looks very good, it gets a rating above 1.00. If it looks risky, it gets a rating below 1.00. If the price trend is flat it just gets a 1.00.
Ratings Go FROM 0.00 TO 2.00. It truly is THAT Simple
Instance: If a stock's RS score is a 1.54 it is more secure than a stock with an RS rating of 0.97.
Nobody Values Stocks like VectorVest. Using VectorVest you can check every stock for RV, RS and RT with just a few clicks. You can verify low-priced stocks. You can check "blue-chips." You could look at entire industries and sectors. It only takes about 20 seconds to check a sector or individual stock and rank them to get clear, and powerful BUY, SELL or HOLD signals. It's amazing.
A person can also examine other parameters. Like P/E ratios, dividend yields, high earnings growth rates and more.
Vector Vest may help an individual in guarding your capital and expand your wealth with clear BUY, SELL, HOLD signals.
Here I would say, Vector Vest in the smartest, fastest and easiest to use stock analysis system.
Author writes frequently on technical analysis software and stock technical analysis software. To know more on the topic from author, visit - http://raybishop2010.typepad.com/blog
