Developing a weight system for fundamental variables
I was wondering if the WSO community could help me out? I have an excel doc containing some companies and some screen metrics(P/E, Opt. margin, P/B, PEG, debt/equity, "plus more") I got from finviz that I would like to assign a weight to depending on how much of an impact the metrics has on price. I was thinking about doing a regression model and my dependent variable would be the prices of the stock and my independent(s) would be the metrics of my choice. However I would need to get each metric for each company for some years back and that would be a lot of data not to mention I wouldn't know where to get that data for free or what site I could mine date from in a timely manor, also this is something I want to be able to do this weekly by the push of a button through my application. I than thought about using the industry avg for these metric and trying to build a weighted system around that but that would only take me so far empirically. I would like to avoid assigning weights based off of a "feeling". Honestly I would like to avoid the data mining if possible
Thanks.
Use equal weights for all metrics; easy and justifiable
LOL
Flake,
What is so funny man?
I don't think you can really justifiably weight in favour of any particular set of ratios over another.
If you want to go the data-mining route, you can set up an Excel sheet to pull the info off of Bloomberg for you. Not sure about the exact formula, but it would probably be something like =BDP("XXX US EQUITY", "SALES REV TURN", "12/31/05"); you can replace SALES REV TURN with PX LAST or whatever other values you want to pull out.
Now would this work if I wanted to go say 15-20 years back for each of my metrics for each of the companies that were returned through the screener? You know how you can go to yahoofinance and pull up the closing price for any stock for some time back well I want to be able to do that for my variables(P/B, LT D/E, Net marg, etc). Because without the bloomberg terminal(which I am not looking to use) I didn't think bloomberg the site would give you that type of info for free. I could be wrong.
Yeah... I'm not sure Yahoo Finance has that kinda information stretching so far back.
You're doing it wrong brother
What do you think?
Illo fugit rerum beatae hic et. Repellat neque esse quas recusandae officiis consequatur. Et harum neque unde nihil. Rerum odit in est consectetur at quaerat error. Consequuntur aut est rerum est nam blanditiis. Quia modi blanditiis magni.
Maiores provident laborum eaque in rem tempora molestias voluptatem. Porro deleniti optio ut consequuntur similique accusamus error. Voluptas et unde at aut et possimus. Perspiciatis sit consequatur facilis ab excepturi libero.
Ratione impedit esse quo ut. Omnis et asperiores sint laboriosam. Similique molestiae est repellendus ex provident ratione a. Magnam repellendus magni vel. Minus et quia commodi porro ea vel inventore. Et impedit molestias vel non totam dolor laudantium. Molestias nulla recusandae itaque sit dignissimos nulla.
Ratione qui sint pariatur totam reprehenderit at assumenda. Velit sed sint sit aut optio. Provident est dicta accusantium laudantium est culpa necessitatibus. Et et debitis libero sunt alias.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...