- The first is historical performance, which looks at the company’s historical financials over the past 10 years, where discounts are given for poor performance and inconsistency.
- The second is profitability, which examines profitability ratios such as return on equity, return on assets and margins.
- The third aspect is yields and valuation, which compares the company’s fundamental yields against the risk-free rate, along with its relative valuation to peers.
- The fourth aspect is financial safety, which examines the company’s balance sheet, comprising liquidity and solvency ratios, the quality of its shareholder equity, and any external credit rating on the company.
- The fifth is sentiment, which looks at analyst ratings and forward price ratios of the company.
- The last aspect is the price-to-value ratio, which compares the price growth to the weighted value growth over multiple periods. This weighted value includes revenue, net income and cash flows in ascending order.
The Edge Singapore has scored the stocks featured in this week’s Johor-Singapore Special Economic Zone (JS-SEZ) cover story based purely on quantitative metrics. The scoring table comprises 10 companies listed on the Singapore Exchange (SGX:S68
) (SGX) and Bursa Malaysia.
Similar to previous issues, the scoring table considers six aspects of the company.
