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Stock Valuator Tables:

The performance of the Stock Valuator Model has clearly not been as good as our other models, especially our Price Projector Model. There may be two reasons for this. First, most investors and other investment services primarily use valuation models and approaches. This means that using a valuation approach to investing and selecting stocks is extremely competitive. Second, in some investment environments, investors and, especially, short-term traders tend to push stock prices to extremes. Overvalued stocks become even more overvalued, and undervalued stocks are depressed to even more undervalued levels.

The Stock Valuator Model still has demonstrated some ability to distinguish between undervalued and overvalued stocks. Over the ten-year period we have tracked the performance of the Stock Valuator Model, undervalued stocks, defined as those ranked in deciles 1 through 4, experienced an average annual price increase of 13.89%. By contrast, overvalued stocks, defined as those in deciles 7 through 10, rose by an average of 8.13% per year, with stocks in deciles 9 and 10 up only 6.89% per year.

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Stock Valuator Model 1997-2006
Stock Valuator Annual Performance: This table illustrates the yearly performance for the Stock Valuator Model.

Stock Valuator Model: 3 yr, 5 Yr, 10 yr and Since Inception Annualized Changes
Stock Valuator Annualized Changes: This table illustrates the annualized performance changes for the Stock Valuator Model.