Compare and screen
Companies side by side, and a screen for the ones you want.
Start
- 5 lessons
- 21 min
About this section4 goals5 key words
Put companies side by side: their returns from the same start, their valuations and operating numbers, how they move together, and a screen of the whole market for the ones that match your rules.
What you will be able to do
- Compare returns on a shared start date (
CMP). - Read a peer valuation table (
RV) and valuation and fundamental history (GE,GF,PEB). - Measure how two stocks or a basket move together (
GR,CORR). - Screen the market on valuation, growth, liquidity and ownership (
EQS).
Five words to know
- rebase
- restart several series at the same value (100, or 0%) on the same day
- peer group
- a set of comparable companies
- correlation
- how closely two things move together, from -1 to +1
- regression
- fitting a straight line through points to measure a relationship
- criterion
- one rule in a screen, like "P/E below 20"
- 01Comparing returns (CMP)
CMPdraws two or more tickers as percentage returns from the same start date, so you can see which did better over the same window.4 min - 02Relative valuation (RV)
RVputs a peer group in one table at today's prices (size, P/E, forward P/E, EV/sales, free cash flow yield and growth) so you can judge a company's price against its peers.4 min - 03Valuation over time (GE, GF, PEB)
PEB,GEandGFturn valuation snapshots into history: a stock's price against fixed P/E lines, multiples over time for several tickers, and statement lines across companies.4 min - 04How stocks move together (GR, CORR)
GRstudies how two tickers move together (ratio, rolling correlation, regression) andCORRbuilds a correlation matrix for a whole basket.4 min - 05Screening the market (EQS)
EQSkeeps only the stocks in its stored universe that meet all your rules (valuation, growth, margins, liquidity, ownership and more) and ranks the matches.4 min
Educational material about reading market data, not investment advice.