Discover all the metrics that make our analysis possible
Solvency indicators
Debt warning
It sends a warning as to whether the company's solvency is at risk or not. The debt alert evaluates financial and non-financial companies differently, and has a special treatment with banks. A 0 indicates no alarm and a 1 can be interpreted as a possible unstable financial situation.
Quality indicators
MOAT SP500
Measures the competitive advantage of a company's fundamentals compared to the fundamentals of SP500 companies. A 0% indicates average performance, and more than 0% indicates a competitive advantage with the market average. A higher MOAT shows greater competitive advantages and more predictability, more quality.
RAC Price
Measures between 0 and 100% the risk absorption capacity of an asset when a correction occurs. Stocks that recover faster from a correction and fall less than the average have a higher RAC price: a sign that market players value an asset highly and are unwilling to sell it. Again, a quality indicator from a technical analysis perspective.
Management Rating
It measures management alignment with shareholders with a score between 0 and 10. Some of the quantitative indicators used are "Is the founder the CEO of the company?" "How much skin in the game do the insiders have?", among others. More than 2 is a good number that shows some signs of aligned management. Another indicator of quality from a descriptive perspective.
Ranking Quality
Sorts the values by quality from all our quality indicators. A low quality ranking value, such as 1, indicates that the action is the best of the entire data set in terms of quantitative quality.
Price indicators
Valuation Baboon Method
Automatically applies financial models and valuation, providing in dollars the proposed valuation for the stock (following Baboon's valuation methodology).
MOS Baboon Method
Indicates as a percentage how cheap or expensive the shares are at the moment according to the Valuation Baboon method. MOS stands for Margin of Safety, the difference in percentage between the quoted price and our valuation. 0% indicates that the stock is trading at its true value. More than 0% indicates some discount to the price (undervaluation). Less than 0% indicates overvaluation.
For example, a stock quoted at $100 that for our methodology is valued at $80 may be overvalued with a MOS Baboon method of -25%. MOS Baboon is a price indicator, and helps us to classify positions by how cheap or expensive they are in the market.
Expected Return Baboon Method
It shows in percentage the year-on-year return that our algorithm expects for this stock over the next five years. An expected return of 15% means that this stock is expected to double in value over the next 5 years.
It should be noted that expected return cannot be compared between companies and that riskier companies should have a higher expected return. We advise investors to use Baboon's MOS Method instead of this indicator to rank stocks, which includes the discount rate (and thus risk) in the calculation.
Master Indicators
Ranking Baboon
It combines the Quality Ranking with the MOS Baboon method and provides a ranking tool to show stocks that have excellent quality and are also cheap. Therefore, a stock with a ranking value of 5 means that within our database this is the 5th highest quality stock at a good price.
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