Who checks the books from Reliance Industries

Quality check for stocks

The TraderFox quality check assigns up to 15 points to each share. We use metrics that have become established in public finance to distinguish quality from junk. The special thing about our quality check is that the 15 criteria are always considered in the context of the remaining shares in the market. According to the principle: A key figure is considered fulfilled if the company does better than e.g. 65% of all other companies in the respective reference market. The quality check is intended, firstly, to help investors reduce the risk involved in investments and, secondly, to make them aware of excellent investment opportunities.

The key figures and limit values ​​used now follow

Growth and Stability:
- sales growth 5 years; 50%
- Stability in sales growth 5 years; 65%
- EPS growth 5 years; 50%
- Stability of EPS growth for 5 years; 65%

Profitability and Profitability
- return on equity; 50%
- return on capital employed; 50%
- net profit margin; 50%

Price development and volatility
- Volatility; 50% (ranking reversed)
- performance per year; 50%
- course stability; 50%

Security and balance
- financial debt; 50% (ranking reversed)
- EBIT / debt; 25%
- EBIT / interest payment; 25%

Red flags
- Too high KUV ?; 10% (ranking reversed)
- Too high P / E ratio ?; 10% (ranking reversed)