Screeners

Robo Screener

We take the Valuator (our most accurate formula) and automatically run it against every symbol daily. The results are presented in an organized and sortable fashion to help you find the perfect investment. The RoboScreener is a great starting point for finding undervalued investments.

RoboScreener - Automated Valuator Results

RoboScreener - Automated Valuator Results

Robo Buffett

The Buffett Formula has been developed over time by hints dropped by Warren Buffett. This formula provides an internal valuation of your target company. This formula calculates intrinsic value by using the past three year’s financial statement results. Net Income is adjusted by adding Depreciation and subtracting Capital Expenditures, and the result is discounted by the average investment grade corporate bond yield. ValueMyStock has slightly modified this formula by using Net Income from Continuing Operations in order to prevent one-time items, such as accounting changes and discontinued operations, from adversely affecting the valuation results. Much like the Robo Screener, we take the Buffett Formula and automatically run it against every symbol in the the three exchanges daily and present this data in a screener.

Robo Buffett Screener

Robo Buffett Screener

Capital Structure Substitution Theory Screener

In the same fashion as the RoboScreener™, each day the CSS Screener applies the popular Capital Structure Substitution Theory (CSS) formula to all symbols. The CSS formula describes the relationship between earnings, stock price and capital structure of public companies. The CSS theory hypothesizes that managers of public companies manipulate capital structure such that earnings per share are maximized. Managers have an incentive to do so as shareholders and analysts value EPS growth. Intrinsic Price is calculated by dividing EPS by (Average Investment Grade Bond Yield x (1 – Corporate Tax Rate)).

Capital Structures Screener

Capital Structures Screener

Greenblatt Magic Formula Screener

Also known as the “Magic Formula”, the Greenblatt Formula was constructed by famous value investor Joel Greenblatt. The formula was made public in his 2005 best seller “The Little Book that Beats the Market.” Using this formula Greenblatt produced returns of 30.8% from 1988 to 2004, beating the S&P 500’s return of 12.4%.

This formula is not a valuation formula, but better used as a stock screener. Our version of this formula follows the same logic put forth by Greenblatt himself. We exclude 1) all companies with a Market Cap less than $50 million, 2) all companies in the Financial and Utilities sectors, and 3) all foreign companies. Once the exclusion criteria is in place we determine the remaining companies’ Earnings Yield (EBITDA / Enterprise Value) and Return on Capital [EBITDA / [Fixed Assets + (Total Current Assets – Total Current Liabilities)].

The resulting companies are ranked from 1 to 50 with 1 being the most attractive stock. The rank order is determined by the Greenblatt Factor, which is the sum of Earnings Yield and Return on Capital. We then value each company on his list using our Valuator tool, and remove any company deemed overvalued, creating the strongest Greenblatt formula available online.

Greenblatt Magic Formula Screener

Greenblatt Magic Formula Screener