Next-Generation Investment Ratings

Fundamental, Risk-adjusted, relative value
Automated for speed and transparency

View Ratings

ERISA qualified investors and non-profit endowments may qualify for a free premium subscription.

Make even better investment decisions

Analysis

Respond quickly to earnings reports. Identify important accounting that may be driving value and risk. Discover investment ideas across different economic sectors and more broadly.

Insight

The market has a lot to say. Is cash king? Do investors value earnings growth? Looking across stocks, you can see how investors assess value today.

Independence

v2 Ratings receives no compensation from securities issuers. Our revenue comes only from premium data subscriptions.

What are Ratings?



The Best Input Data

Fast and Accurate Financial Information

Xignite

Xignite has all the financial data you crave - and some of our favorite APIs in the industry. Please see our case study.

FactSet

FactSet is one of the world's leading sources for corporate financial information.

Calcbench

Calcbench delivers fast updates from SEC reports. The most comprehensive XBRL conversion we've ever seen.





Financial Data Science

Machines to estimate value & risk

Follow a Process

v2 Ratings collects accounting and financial data from many sources and evaluates investment ratings using many models. Our dataset includes prices, earnings, expenses, liabilities, and other data from 10-Ks and 10-Qs, as well as thousands of other metrics.

We have a long-term fundamental-value perspective and we target quarterly performance. We adjust our expectations for returns by our expectations for risk.

Ratings are updated and published throughout the trading day here and our API.

Automate this task

There is simply too much information for humans to value stocks today. In addition, people are biased and make systematic errors in judgement.

Balanced

Ratings reflect our expectations for the balance between return and risk. And we think about risk over multiple time horizons and with a variety of measurements.

Fast

Ratings are updated about every 10 minutes during the trading day.

Focused

It's impossible for a human to pay close attention to many stocks at once, and to do so all the time. However, machines are good at this and can help you discover more opportunities.

Performance

Updated Daily

This analysis is calculated from our open ratings archives. It covers tickers over days ( through ).

quintile Analysis

Here we divide rated stocks into 5 buckets based on each stock's rating at the close of the previous day. We evaluate the average performance of the stocks in each of these quintiles. For example, how did the top 20% of rated securities do? And the bottom 20%?

This analysis ignores transaction costs, but includes turnover analysis. Turnover analysis (see the Portfolio Details tab) includes adding and removing tickers but not daily rebalancing.

To calculate excess return, we define the "Market Average" each day as the average return of all the stocks we cover.


Total Return

quintile Returns
quintile Efficient Frontier

Excess Return

quintile Alphas
quintile Excess Return Efficient Frontier


Top 20% of rated stocks
quintile: 80 to 100%

Cumulative alpha 5 5 Annualized Return = %
Annualized StDev of monthly returns = %

Average Monthly Alpha = %
Monthly Tracking Error = %
Information Ratio =

Notes:
Ratings range on last day: to
Avg trades per day = ( turnover ratio)


The next 20%:
quintile: 60 to 80%

Cumulative alpha 5 4 Annualized Return = %
Annualized StDev of monthly returns = %

Average Monthly Alpha = %
Monthly Tracking Error = %
Information Ratio =

Notes:
Ratings range on last day: to
Avg trades per day = ( turnover ratio)


quintile: 40 to 60%

Cumulative alpha 5 3 Annualized Return = %
Annualized StDev of monthly returns = %

Average Monthly Alpha = %
Monthly Tracking Error = %
Information Ratio =

Notes:
Ratings range on last day: to
Avg trades per day = ( turnover ratio)


quintile: 20 to 40%

Cumulative alpha 5 2 Annualized Return = %
Annualized StDev of monthly returns = %

Average Monthly Alpha = %
Monthly Tracking Error = %
Information Ratio =

Notes:
Ratings range on last day: to
Avg trades per day = ( turnover ratio)


Bottom 20%:
quintile: 0 to 20%

Cumulative alpha 5 1 Annualized Return = %
Annualized StDev of monthly returns = %

Average Monthly Alpha = %
Monthly Tracking Error = %
Information Ratio =

Notes:
Ratings range on last day: to
Avg trades per day = ( turnover ratio)


Market Average:

Annualized Return = %
Annualized StDev of monthly returns = %



We are exclusively an information service provider. We are not an investment advisor. Please see our Terms of Use for more information. For individualized advice, please contact an investment advisor. Past performance is not indicative of future results. The conditions that led to past performance have changed.

Trust, but verify


After 48 hours, ratings are published publicly for your backtesting and analysis.

View and download ratings by ticker or date.
View an analysis of past performance.
Faster access with a premium plan.

Less bias

More math

Humans suffer from normal, natural biases. It's part of what makes us human. Many biases affect how we think about value, risk, the future, the past, and even the historical performance of our own decisions. Often we are not even aware of our biases and will perform mental gymnastics to justify past behavior.

Avoiding biases and conflicts of interest is a core part of who we are.

We serve investors. We do not serve (nor do we charge) the securities we rate. Asking issuers to pay for ratings creates a conflict of interest.

Simple, Open, Free

Simple

Each rating summarizes a lot of information into one number so that you can actually use it.

With a quick glance, you can see how a company is priced relative to its financials, and adjusted for risk.

Open

After 48 hours, ratings are made public. Browse recent ratings or download past ratings and analyse our track record.

Free

Free delayed ratings are sufficient for most investors.
Premium plans are available for faster access.


Process more data faster

Consistently consider both risk and return

Avoid cognitive bias

Historical ratings are open and transparent

Check out our ratings

Happy investing

View Ratings