How does the BTMA Stock Analyzer calculate points for Earnings per Share?
Anonymous Staff asked
I recently bought your Beat The Market Stock Analyzer. I think it is a great product and I really like the concept of it so far. One thing I would like to know is how does the Analyzer calculate points for EPS that is consistent and rising over the last 5 years?
Grant Staff answered
I’m glad that you’re finding the BTMA Stock Analyzer to be useful.The EPS score is determined by the last 5 years’ earnings. Consistency is based on whether the increases in earnings have been at a consistent growth rate range. For example: .10, .11, .12, .14, .17
(These annual EPS amounts would be considered very consistent).
On the other hand, annual EPS amounts of: .10, .05, .19, .07, .25
(would not receive a high consistency score).For the “rising” score, this is determined if the annual EPS results are increasing each year. If the EPS increases each year, then it will receive a high score. If the EPS is decreasing each year, then it would receive the lowest score.
There are also scores in between if the stock is increasing on some years and decreasing on other years.I hope this info is helpful for you.
-Grant