How PRVit Express Works
PRVit stands for Performance-Risk-Valuation investment technology. It is an index of what a firm is worth, based on its risk-adjusted EVA performance relative to its current market valuation. The higher the score, the better the buy. The lower the score, the better the sell.
PRVit uses a total of 24 measures to size up a firm’s Performance (P) in terms of earning and increasing EVA, to quantify Risk (R) in terms of the volatility of stock price and EVA and weakness in cash flow and credit, and to develop a composite Valuation (V) score based on market multiples to book value, earnings, cash flow, and EVA, all expressed on a percentile scale. The PRVit score is the percentile of (P-R)/V, so that a higher score indicates an investor can buy a greater and surer economic performance track record at a lower per unit price. We call it VARP® for Value-at-a-Reasonable-Price®. And it applies almost as well to growth stocks as value stocks, and to finding overpriced stocks to short as well as bargains to buy.
Review our latest monthly report on the PRVit performance record, or download our white paper, The Empirical Case for EVA and PRVit. The bottom line is – PRVit works. It has been a strong and fairly reliable signal of investment merit. Holding a portfolio of stocks that PRVit rates low is not likely to be conducive to your investment health. Consistently holding a high-rated portfolio should help you generate positive alpha. Use PRVit Express to save time and increase your odds for success in these applications:
Generate custom screens to find stocks that match your investment style trading at a discount to their intrinsic EVA value (or a premium for shorting or selling). Sort equities according to any of the unique PRVit component metrics.
Spot notable trends before others with the 4 page PRVit report covering a 6 year history of key EVA metrics for any covered company. Get the facts you need to confront management.
Compute your portfolio’s position-weighted PRVit score to see if you are betting with or against the model. Visualize your portfolio’s PRVit profile and factor exposures with our proprietary Heat Map.
Use a downtrend in PRVit score to find exit candidates. Set a minimum PRVit score for your portfolio.
Call up a sector or industry screen to find paired peers to long and short.
Incorporate the PRVit score and metrics directly into your model with our daily data feeds.
PRVit is updated daily. The U.S. model covers the Russell 3000 plus several hundred ADR’s, and the global edition covers 9,000 equities worldwide.
To learn more about PRVit, view a screencast on PRVit.