Valuation Grades- Companies are rated on the below scaleįinancial trend looks at the latest results of the company and measures the momentum in the key financial parameters. Other Factors: Other key factors are company’s PEG, Dividend Yield (upgrade) and Extreme valuations (downgrade).

Past Valuation: We measure the difference in the premium / discount which the company is trading at vs its own past.

We then compare where the company is trading vs where it should trade. We adjust this derived number for the company’s sector and its own growth and debt levels.

Fundamental valuation: By looking at the relationship of the fundamental variable and valuation multiple we arrive at the regression equation to calculate where the company at its current fundamentals should trade.

In our relative valuation measure we look at the below key parameters We believe a company with stronger fundamentals can justify higher valuation multiples but a company with weak fundamentals cannot even justify lower multiples. Valuation: Attractiveness of the stock at the current price and multiples Quality Grades- Companies are rated on the below scale We also give importance to institutional holding and holdings by domestic funds.

Management Risk: Company’s ability to deliver return on its capital over a long period of time, coupled with market linked factors to determine whether the profits are real like dividend payouts, tax payout etc.

For banks this is measured using capital adequacy ratios

Capital Structure: Suitability of company’s debt measured and debt serviceability.

Growth: Long Term growth in sales, operating profit and net profit.

We believe High Quality companies are the ones which demonstrated strong fundamentals consistently over a long period. Technicals: Near term price and volume momentum.Valuation: Attractiveness of the stock at the current price and multiples.Quality: Long Term Fundamental Strength.To arrive at the Mojo Call on a stock, we look at 4 key Dot parameters of The Score is accompanied with our call on the stock which has a scale across Here is how MarketsMojo evaluates every companyĮach company is evaluated across multiple parameters and our final call on the stock is crystalized as the Score and Call on the company.Įvery company is rated on a scale of 0 to 100, with higher the score the better.

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