Summary
The Summary tab of the Portfolio Risk Analyzer provides a clear, side-by-side snapshot of the stock’s overall investment risk based on three core evaluations: Historical Analysis, Future Scenario Analysis, and Net Present Value (NPV) Analysis. Each section includes a color-coded rating bar with a corresponding letter grade that reflects the level of risk, from A+ (lowest risk) to F (highest risk). To the right of each rating, you’ll find a brief explanation of the analysis and the key insights driving the rating. This tab allows investors to quickly grasp how the stock scores across multiple dimensions of financial health and valuation, helping them make more informed decisions at a glance.
The summary area of the Historical Analysis provides a quick snapshot of a stock’s risk rating and historical performance.
ERS’s Historical Analysis evaluates past financial conditions to help investors make informed decisions by identifying patterns that have consistently led to gains while minimizing the risk of significant losses.
The Future Scenario Analysis summary provides a high-level assessment of whether a stock’s current valuation is sustainable based on historical comparisons.
The text block on the right explains key insights, highlighting whether the stock’s Price-to-Sales (P/S) and Price-to-Earnings (P/E) ratios are significantly above historical norms and the potential downside if they revert.
The NPV Analysis summary offers a quick, visual assessment of whether a stock is trading above or below its intrinsic value.
The text explanation on the right highlights the key reason for the rating, based on the relationship between the company’s NPV and its market cap. The greater the multiple the market cap is over a company’s NPV, the greater the risk and the worse the rating.