Saturday, March 16, 2013

Company evaluation spreadsheet.

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

As I mention in the video, I have been playing around with a scoring system for quite awhile.

There is one common way to evaluate the strength of a company that I left out, debt. Lots of different ways to do it but I have it rolled under payout ratio. Some companies can have lots of dead and provide an enormous amount of free cash flow to let them pay a dividend and manage their debt payments, they will have a low to mid ranged payout ratios. Other companies and sectors can afford very little debt as the do not provide much margin on their products and any dividend would cut into their profits quickly. This would give a high payout ratio.

I prefer to color code it with reds and greens and have it automatically change with conditional formatting. Lots of numbers going on in this page and each column has a different meaning of what is good or bad for it. Very quickly your eyes jump to the clusters of green and what we should be focusing in on.

I like complex but automated while you may like something quick and easy. You should do what you'll stick with and what works for you. It won't do any good if you try something you hate and give up on it.

I'll add this spreadsheet to the Active account page.
Here is a copy of the spreadsheet.

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.


  1. Hi there can you share spreadsheet?

    1. Yep. I made a copy and will put it in above.

    2. Good post here. How often do you find it necessary to fill in the columns that don't fill themselves in automatically? This is very effective at integrating past and future stats of stocks.

    3. Book value, EPS, and forward EPS.... if its a company I am invested in or I'll update it when I read their new earnings report. If not then maybe every 6 months.

      Anything that is 10 year averages get updated once a year. Thats not going to be changing much at all.