Equity Research
Since October, 2004, EVA Dimensions has distributed equity research and stock ratings to investors.
Covering the Russell 3000 universe with daily updates, Dimensions’ EVA-based research features a 3-page analysis of each firm’s performance trends, risk exposure and valuation multiples - hence the name PRVit™, standing for the performance-risk-valuation investment technology.
The research culminates in a percentile stock rating for each firm that is based on its relative risk-adjusted return on value, or in symbols, its Performance score less its Risk score divided by its Value score - measured in relation to sector peers and the market universe. Firms with high PRVit scores are offering investors an apparent bargain - a higher than normal ratio of risk-adjusted EVA performance per unit of value paid, and vice versa.
Unlike the bulk of Street research, which tends to be based on an analysis of highly unreliable accounting metrics to reach buy/sell recommendations, the PRVit system is firmly grounded in the theoretically sound and empirically proven EVA valuation framework. Also, being purely formulaic and quantitative in nature, the model resists human bias. PRVit is based on hard facts, not crystal ball predictions. A rigorous statistical analysis that pits every individual company against all other Russell 3000 firms is another advantage, affording PRVit a broad gauged, bird’s eye view that surely complements the insights of even the most talented individual analysts.