LATEST SPREADSHEET CORNER ARTICLE:

Calculating Mohanram’s G-Score Using SI Pro and Microsoft Excel

First Quarter 2014

In the October 2013 issue of the AAII Journal, we presented a growth-stock screen constructed on the research findings of Partha Mohanram. The article, “Finding Winners and Avoiding Losers Among Glamour Stocks,” looked at stocks with high price-to-book-value ratios that possess financial qualities that should help them succeed in the future. The screen used data from AAII’s stock screening program and fundamental database, Stock Investor Pro.

Mohanram created a scoring system that related company information to industry/sector medians. While we could have captured the spirit of the screen without the industry comparisons, we determined that we could export relevant data from Stock Investor Pro into an Excel spreadsheet to perform the analysis on a sector level. In this Spreadsheet Corner, we present how we used Excel to perform our analysis. We provide the Excel export file for download from the Computerized Investing website, and any cell references in this article relate to that file.

Research Background

Most academic research suggests that investing in glamour stocks is a losing proposition. On average, firms with high valuations determined by factors such as the price-to-book-value ratio underperform the market over the long term. While the market does a good job of valuing securities in the long run, in the short term it can overreact to information and push prices away from their true value.

Read More »

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

Bullish Sentiment Lowest in a Year
posted 2 hours ago by Wayne Thorp

Mt. Gox Likely to Begin Liquidation Process
posted 1 day ago by Wayne Thorp

Intel’s Profit Declines Again Yet Shares Rise–What’s In Store for PCs?
posted 1 day ago by Joe Lan

Today Only: Google Glass for Sale
posted 2 days ago by Wayne Thorp

Report: Amazon Preps Smartphone
posted 3 days ago by Wayne Thorp


Recent Articles

Fourth Quarter 2013

Excel 2013/Office 365 Home Premium

A look at the fundamental changes that have taken place with Office 2013 and some new features offered in Excel 2013.

Third Quarter 2013

The Ulcer Index of the AAII Stock Screens

Calculating the downside risk of the stock screening methodologies tracked at AAII.com.

Second Quarter 2013

Bond Duration & Convexity

Part three of our series on bond calculations takes maturity into account when measuring price sensitivity.

First Quarter 2013

Bond Prices, Returns and Volatility

Part Two of our series on bond calculations focuses on Excel functions for measuring value and comparing bonds.

Click here for entire collection of Spreadsheet Corner articles ➜