Monday, January 9, 2012

Portfolio Fundamentals

An exciting new capability is the integration of the Real Time System with Valuation Tutor (VT in what follows).  What it lets you do is conduct a fundamental analysis of your portfolio and also helps with stock selection.  I will describe the latter capability in a more general posting about using VT for stock selection.  Here, I will focus on the portfolio analysis.

Recall that in VT, you can analyze and compare companies along many dimensions.  These include common size analysis, cost-volume profit analysis, efficiency ratios, as well as price ratios.  Now, you can do the same for your stock portfolio.  This lets you answer questions such as: what is the ROE of my portfolio?  How does it compare to the stocks in my trading case?  How does it compare to specific industries or sectors?  And ROE is just one metric; you can compare your portfolio to any subset of stocks (in the VT dataset), sector and industry averages, and see exactly what are the fundamentals of your portfolio along any dimension covered by VT.

To use the capability, launch the FTS Real Time client and log in to one of our US Equity cases.  I will use the simplest case, the 30 stock case to illustrate the connection.  After you log in, click on the (new) Valuation Tutor tab:

 When you transfer the data, VT creates an (artificial) stock called “RT Portfolio”

Saturday, January 7, 2012

Valuation Tutor

We have had some exciting developments with Valuation Tutor. First, we have added a lot of visualization and comparison capabilities.


You can read about these on the Valuation Tutor blog:
Financial Statement Analysis- The Power of Visualization
Financial Statement Analysis- The Power to Compare 
The capabilities are also described in the video at the top of this blog. Second, we have integrated Valuation Tutor with the FTS Real Time Client. I will soon post a description of this, together with an example of using Valuation Tutor for stock selection, so stay tuned!