Frequently Asked Questions
What services does Value Prime offer?
Value Prime provides independent stock analysis, as well as offers analytics consulting
and analytical sales tools development services for its institutional clients.
Our equity research reports provide comprehensive quantitative and statistical analysis of NYSE, AMEX,
NASDAQ stocks. Our mission is to provide objective equity research which is actionable, practical and educational.
The stock reports also contain stock ratings using investment approaches of Wall Street experts based
on our interpretation of their published writings.
Value Prime Research & Analytics consulting provides qualitative and quantitative research services.
Our extensive experience in quantitative modeling and analysis enables us to provide customized sales
and marketing tools which can dramatically improve a company's selling effectiveness and increase its
What differentiates Value Prime from other
financial stock analysis sites?
What makes Value Prime unique is the proven quantitative methodologies
it uses to forecast stock performance from various angles in an easy-to-understand format. Value Prime provides the most comprehensive stock analysis reports, which you will not find anywhere else, either in print or on the Internet. Value Prime uses sophisticated statistical models
to analyze stocks for risk, valuation, financial strength and momentum.
We also perform this analysis using published strategies of Wall Street experts such as Buffet, Lynch and others.
We then present these results in an easy-to-understand format that makes the buy, sell or hold decision easier for our subscribers.
How do you determine ratings
for each stock?
Value Prime utilizes the most advanced models to analyze stocks. Here is our overall methodology:
For our stock valuations, whenever available, the
trailing 12-month data is used. Otherwise,
we use data reported in company's latest 10K.
Each stock is then analyzed
for fair market value based on discounted cash
flow (DCF), relative
valuations and other proprietary
techniques. We have
designed a number of distinct equity valuation
models, each applicable to particular
sectors. For example, because of the unique
characteristics of the financial and technology
sectors, the Value Prime engine
uses different models to analyze
stocks in each of these sectors.
Value Prime also provides stock ratings using investment approaches of Wall Street experts based on our interpretation of their published writings. These experts include: Warren Buffet, Peter Lynch, William O'Neil, Bill Miller, Richard Driehaus and John Neff.
Do you use different models for different
Yes, Value Prime
has developed distinct valuation models to address
different industries. These models take into
consideration the special characteristics of
What does the Overall Stock Rating
This rating shows the stock's overall long-term
outlook. This rating is based
on the stock's long-term price appreciation potential,
risk, long-term growth potential and other factors.
Overall Ratings range from "F" (very poor) to "A" (excellent).
About 5% of the stocks in our database
earn an "A" rating.
What does the Valuation Rating signify?
This rating gives an
indication of stocks's long-term price
appreciation potential. It is calculated
based on company's intrinsic and relative
valuation results. A very high or high
Valuation rating indicates that both intrinsic
and relative valuations point to attractiveness
of the stock. Conversely,
A very low or low Valuation Rating shows
that both intrinsic and relative valuations
point to the unattractiveness of the
What does the Risk Rating signify?
rating gives an indication of stocks's long-term
risk. It is calculated based on a number
of factors, including stock's average return
and volatility over the recent 5 years. A stock with a low risk rating, for
example, would indicate that it is safer and
more predictable than a stock with a higher risk
What does the Momentum Rating signify?
rating shows stock's long-term growth potential
and dynamics. It is calculated based on
factors such as stock's average annual earnings
growth, stock's average annual sales growth,
stock's price movements and a number of other factors. A stock
with a high growth rating, for example, would
indicate that the stock's growth momentum is
strong and positive over the long-term.
What does the "Wall Street Experts" Rating signify?
In addition to providing quantitative and statistical analysis of NYSE, AMEX, NASDAQ stocks, Value Prime
provides stock ratings using investment approaches of Wall Street experts based on our interpretation of
their published writings. These experts include: Warren Buffet, Peter Lynch, William O'Neil, Bill Miller, Richard Driehaus and John Neff. These ratings provide yet another way of evaluating a stock's long-term potential.
Do stocks that are undervalued always get a better Overall Rating that stocks that are overvalued?
Not necessarily. It is quit
possible for a stock to be overvalued, but have a high Overall
Rating. It is also possible for a stock to be undervalued,
but have a low Overall Rating. This is because
the Overall Rating system also examines other
factors such as risk and long-term growth potential
for the stock. It is therefore recommended to
look at all five ratings (overall, financial strength, risk, valuation
and momentum) before drawing any conclusions.
Should I buy or sell stocks based
on the analysis provided by Value Prime?
before using Value Prime. The information on this
site is generic and does not represent a recommendation
to buy or sell stocks. You should seek the advice
of a qualified investment professional prior
to making any investment decisions.
How often are the stock reports updated?
All the reports are updated once a week.