The New Executive Summary Explained
StockPointer subscribers have access to a revamped Executive Summary that provides more analytics to simplify interpretation.
In addition to the upgraded user-interface, three new features have been added:
- Upgraded Intrinsic Value display
- New performance indicators
- New data points
Quote box summarize daily information on the company. It contains essential information on the company including dates, currencies, and company location.
StockPointer® evaluates the intrinsic value of a company by adding the current value of the company and estimating the present value of Economic Profit generated by the company over time.
This sections offers 4 key performance indicators and provides insight for interpreting the performance of a company.
Reputation (Market Value Added)
This key performance indicator is used to gauge the capacity of management to increase the value of the company. The market value added (MVA) is calculated by deducting the invested capital to the total market value. This KPI calculates the percentage of MVA of the market capitalization. The higher the percentage, the higher the reputation. On the other hand, a negative MVA means that the company has an unattractive reputation.
Effective management will grow the MVA, whereas bad management will destroy the MVA.
Percentage Future Growth Value On Market Capital
This key performance indicator is important to evaluate if the stock price is fairly valued. The future growth value (FGV) is calculated by deducting the current operating value of the company from the total market value. In addition, the FGV is the net present value of all future EVA.
This is a complex KPI. Firstly, you must look at whether or not the FGV is in line with the company’s current situation. For example, we expect a high FGV for growth stocks and almost no FGV for a slow or no growth company. Companies can sometimes trade at a discount or at a premium. For example, a growth stock with a declining FGV growth but rising EVA growth signals a bullish forecast.
Economic Performance Index
The economic performance index (EPI) is the main indicator to identify how much wealth is redistributed to the shareholders. The higher the better, and a negative EPI means that the company is not covering its costs of capital.
EVA Versus Net Operating Profit
This KPI is very useful for understanding the correlation between economic value added (EVA) and net operating profit (NOP). If both the NOP and EVA have the same slope they will be given a parallel and green signal. If both the NOP and EVA are sloping up but the NOP is flatter, it will have a converging and green signal. If both the NOP and EVA are sloping up but the EVA is flatter, it will have a diverging and red signal.
This section presents information in four sub-sections.
- Intrinsic Value
- Market Performance
- Economic Performance
- Accounting Performance
You can view the sections as separate tabs or as a complete list by changing the display on the right.
This tab shows the performance and valuation metrics.
The Market Performance tab displays TTM and quarterly MVA and FGV information for the last 5 years.
The Market Performance tab displays TTM and quarterly NOPAT and EVA information for the last 5 years.
The Market Performance tab displays TTM and quarterly accounting information for the last 5 years.