Obermatt rank method
The rank method for an objective and independent stock analysis.
Obermatt analyses stocks based on financial facts, fundamental analyses and overall market sentiment. This is different from stock analyst ratings that are biased by personal judgments. At Obermatt, we cumulate individual analyst and professional opinions into a rank, which gives an indication of overall market sentiment for a stock. Together with the financial facts and fundamental analysis, our ranks provide a comprehensive and objective view of a stock.
Financial ratios become Obermatt Ranks
The process works as follows: Obermatt first converts the key financial metrics to Obermatt ranks (1 to 100). The higher the rank, the better the financial metrics from the perspective of an investor. Related financial ratios are then combined into stock investment strategies. These strategy ranks are the result of the Obermatt stock recommendation for the Top 10 Stocks.
A company that performs better against comparable companies is found at the top of the list. Comparable companies make up the peer universe. Each peer universe consists of dozens of other companies that follow similar market cycles, produce similar products, or have similar distribution markets.
Every financial metric is converted to a rank. These ranks are to be understood as percentile ranks, where the 1st percentile is the lowest and the 100th percentile is the highest rank. The percentile rank quantifies the percentage of competitors in the peer universe, which were outperformed by the company. A rank of 75 means that the company is better than 75% of the peer companies in the peer universe.
Indexing company performance is an intensive computation process but also brings many benefits. An important advantage is the ability to easily identify the winners, regardless of whether the markets are rising or falling.
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