CI Market Dashboard

We have put together a collection of market indicators and track them to help you gauge the direction of the market.

CI Analysis Worksheets

Interactive analysis templates covering DuPont analysis (return on equity), valuing stocks the Warren Buffett way, and more to come.

CI Blog Feed

Cisco Systems to Buy Jasper Technologies for $1.4 Billion
posted 1 day ago by Computerized Investing

RBC Wealth Management Partners with BlackRock’s Future Advisor
posted 4 days ago by Jaclyn McClellan

FINRA Begins Looking Into Robo-Advisers
posted 8 days ago by Jaclyn McClellan

Wealthfront Now Offers Free Portfolio Reviews
posted 12 days ago by Jaclyn McClellan

Gartner Expects Worldwide Devices Shipments to Grow 1.9% in 2016
posted 17 days ago by Computerized Investing

Computerized Investing > November/December 2004

Messages: What Members Are Asking On-Line

PRINT | | | | Add your comment! | A A   Reset

by CI Staff

I have been trying to find a program that screens for value in a truly useful manner. I am a veteran investor—43 years! When you screen for low price-earnings, price-to-book and price-to-cash-flow ratios you get nothing, most of the time, but cheap stocks that are as often as not going to stay cheap.

The most helpful way to screen for value is to look for stocks that are cheap using these metrics within a historical framework. I want to know which stocks are now in the lowest 10% of their 15-year range of price-to-book ratio and price-to-cash-flow ratio. Thus, Alcoa may be cheap at 0.9 times book and Patterson Dental at five times book. I don’t include the price-earnings ratio since it doesn’t work for cyclical stocks and cash flow is better anyway.

...To continue reading this article you must be a Computerized Investing Subscriber.

Gain exclusive access to this article and all of the benefits and investment education a Computerized Investing subscription offers.

SUBSCRIBE TODAY for just $24.
Log in
Already a CI subscriber? Login to read the rest of this article.

A subscription to Computerized Investing includes a monthly email and access to the CI Website, all of which aim to benefit your investing skills with respect to computers and the Internet.



No comments have been added yet. Add your thoughts to the discussion!

You need to log in as a registered AAII user before commenting.
Create an account

Log In