To help you identify good long-term investments SimplyWallSt provide you with a detailed fundamental analysis on every listed company presented as an easy to understand infographic.

The analysis uses institutional quality data from Standard and Poor’s Capital IQ and performs 30 checks across 5 different areas. Over 1,000 data points are used to analyse each company and these are updated every 6 hours.

The full documentation explaining our analysis and can be found here.

What’s included in our analysis?

1. Value

Are you paying a fair price for the stock? Is the company undervalued compared to others in the same industry?

SimplyWallSt help you answer questions like these by using Discounted Cash Flow calculation, PE, PB and PEG ratios and comparing them inside the industry and the market.

2. Future performance

How will the business perform in 3 years? Will it grow significantly? How effective will it be in using shareholders’ money to create profit?

SimplyWallSt don’t attempt to predict future share prices (it never works anyway). Rather we focus on future estimates of Revenue, Cash flow, Earnings and Return on Equity by professional analysts following the company.

3. Past performance

Is the current drop in earnings just a one-off thing? Has the company been effectively utilizing its resources to create profit?

SimplyWallSt look at metrics like EPS growth, Return on Equity, Return on Capital and Return on Assets over the past 5 financial years to help you understand if the company has been a well functioning business.

4. Financial Health

Is the level of debt dangerous to the stability of the company? Can it meet its short term commitments? Are the interest payments well covered by earnings?

Analysing the balance sheet can be a nightmare for a non-professional investor. We do it for you and focus primarly on the amount of debt to make sure you don’t get burned.

(Note: SimplyWallSt use a different financial health analysis for Banks and Financial Institutions.)

5. Dividends

How does the annual yield compare to market? Can the company afford to keep paying the current level of dividend in the next 3 years? Has it been stable for the last 5 years?

SimplyWallSt looks at the level of dividend payment and compares it against other dividend payers. In addition, It also analyze the volatility and sustainability of the dividend

6. Management

Does the CEO and the board have enough experience to take the company through the rough times? Are company insiders selling?

While not being part of our core analysis, SimplyWallSt still think it is important to consider. SimplyWallST look into metrics like tenures of the board, reasonable compensations, and insider buying/selling.

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FAQ

Data and Analysis

Our Data

• Why is some of the data on Simply Wall St different to other sites?
• Inconsistent Intrinsic Value for the same company across multiple listings
• Where does Simply Wall St source its financial data?
• How is the financial data collected?
• Which brokers/analysts provide future estimates for companies on Simply Wall St?
• How often is the data updated?

Our Analysis Model

• How is your Analysis Model work?
• What analysis are you doing on companies?
• How do you analyse companies?
• How do I read the ‘Upcoming Dividend Payment’ infograph?

The entire documentation of SimplyWallSt Analysis Model is available for public as part of our commitment for transparency.

For more info, please visit SimplyWallSt Knowledge Base section by clicking here…