How the Obermatt method provides guidance in a difficult market environment
In an environment where markets appear expensive and many investors are wondering whether it is the right time to invest, the Obermatt method with its objective rankings comes into its own. Markets may appear overvalued at first glance, but the in-depth analysis of Obermatt ranks can help to find attractive investment opportunities even in difficult times.
What makes the Obermatt ranks special?
The Obermatt ranks evaluate companies based on various key figures and data and compare them with the results of other companies in the same sector. Each metric is converted into a rank on a scale of 1 to 100, with a higher rank indicating above-average performance. This transparency allows investors to act on the basis of facts rather than market sentiment and feelings alone.
The ranks of the Obermatt method:
- Value rank: measures the attractiveness of a company based on its valuation compared to its earnings and assets. This allows you to find cheaply valued companies in a highly valued market.
- Growth rank: Evaluates a company's growth in terms of sales, earnings and cash flow. Companies with a high growth rank are often valued correspondingly expensively on the stock market. The expected growth of the company is therefore already priced into the share price.
- Safety rank: Analyzes the stability and financial security of a company. Especially in a pessimistic market environment, these companies are an important component of a portfolio, as they are well financed and therefore tend to be less affected by a market correction.
- Sentiment rank: Reflects the mood and opinion of the market. Not only the financial situation of a company, but also the expectations from the market are decisive for the performance of the share price.
The combined rank summarizes the 3 financial ranks, value, growth and security. The 360° view provides a holistic view of a company by including the sentiment rank in addition to the 3 financial ranks.
Obermatt method for different types of investors
An expensive market environment brings many challenges for investors. Fear of a fall, uncertainty about the right time to enter and an overwhelming flood of information make it difficult to make clear decisions. The Obermatt method, with its objective approach and transparent rankings, offers a solution that can be targeted at different types of investors.
The conservative investor: safety first
Conservative investors attach particular importance to stability and financial security. For them, the security rank of the Obermatt method is of crucial importance.
How conservative investors can benefit:
In an expensive market environment where volatility often increases, conservative investors can select companies with high safety ranks. These companies tend to have stable revenues, low debt and are better able to weather economic downturns.
The growth-oriented investor: focus on opportunities
Growth-oriented investors look for companies with above-average growth potential, even if this means taking higher risks. For them, the growth rank is the decisive indicator.
How growth-oriented investors can benefit:
Even in an expensive market, there are companies that grow faster than average through innovation or new market opportunities. Growth-oriented investors can specifically look for these companies and thus benefit from future successes.
The value-oriented investor: discovering undervalued companies
Value investors aim to find companies whose share price is low in relation to their fundamentals. For them, the value rank is the most important indicator.
How value-oriented investors can profit:
Even in an expensive market, there are companies that are undervalued - perhaps because they have been overlooked or are in a temporary period of weakness. The value rank helps to identify such opportunities.
The balanced investor: diversification and balance
For investors who neither want to take extreme risks nor focus purely on security, the combined rank and the 360° view are ideal guides.
How balanced investors can benefit:
Balanced investors can identify companies that perform well in all of the categories. These companies are often stable, growing sustainably and fairly valued.
It is always advisable to consider all ranks. Depending on the type of investor, the main focus lies on a different rank.
Conclusion: Seize opportunities even in expensive markets with the Obermatt method
The Obermatt ranks are a valuable tool for navigating a challenging market environment. While many investors avoid expensive markets, the Obermatt method provides clear and data-based guidance to identify companies that are worth investing in despite high overall market prices.
With this method, you can ensure that your decisions are based on sound financial figures and not on market rumors or emotions. This allows you to stay on course even in turbulent times and benefit from your investments in the long term.