The ERP5 ranking is our home-brewed ratio based on the magic formula and ideas by the father of value investing and stock screening in general, Benjamin Graham. We developed this formula as we didn't want to find companies that just performed well during the last year, but also the 4 years before that. We also wanted to remove companies with a high price-to-book value. This formula worked very well in our backtests and it has become a favorite factor of many of our members.
The visualization is very similar to the magic formula. We display both the ranking and a star rating.
New! The ERP5 score is now fully dynamic and is calculated on a filtered stock universe using the filters specified in the Filter Menu. The filters taken into account are: countries, markets, industries, market cap, trading value, results age and currency.