Altman Z-Score: What Bankruptcy Risk Models Can and Cannot Tell You
An Altman Z-Score of 1.51 is not a 1.51% probability of bankruptcy. It is not a countdown, a credit rating, or proof that a company…
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Piotroski F-Score: How to Read Financial Quality Signals
A Piotroski F-Score of 6 looks precise. It is also incomplete. The number tells you that a company passed six of nine annual accounting tests….
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9 Stock Analysis Models Compared: Value, Growth, Momentum, Dividend, Risk, and Sentiment
Place nine stock analysis models on one screen and an appealing shortcut appears: count the favorable results. That shortcut is analytically wrong. A Discounted Cash…
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Mark Minervini Trend Template: What It Measures and What It Misses
Passing the Mark Minervini Trend Template is not permission to buy a stock. It is evidence that a stock satisfies a defined set of technical…
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Momentum Investing Signals: How to Read Strength Without Chasing Price
Momentum investing signals can identify persistent market strength, but they cannot tell you whether an impulsive decision is justified. A stock can be one of…
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CAN SLIM Investing Model: How Growth and Momentum Work Together
The CAN SLIM investing model combines two forms of evidence that investors often separate: improving company results and confirmation from the market. That combination is…
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Peter Lynch GARP Model: Growth at a Reasonable Price Explained
The Peter Lynch GARP model asks a deceptively simple question: is a company growing fast enough to justify the price investors are paying for its…
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7 Stock Valuation Models Investors Should Know Before Trusting a Fair Value Estimate
Stock valuation models can make a fair value estimate look like a fact when it is really the conclusion of a model. The number may…
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DCF vs Buffett Intrinsic Value: Two Different Ways to Think About Value
DCF valuation and Buffett Intrinsic Value are easy to confuse because both try to estimate what a business is worth under assumptions. That surface similarity…
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Gordon Growth Model: When Dividend Valuation Works and When It Fails
The Gordon Growth Model looks almost too simple. Take next year’s expected dividend. Divide it by the required return minus the dividend growth rate. The…