In our equity research we extract figures from the Annual and Interim Reports of 130 plus of the largest UK quoted companies.

Our aim is to use an objective approach to valuing companies that puts them on an equivalent basis, allowing us then to rank them by risk and return.

We don’t ignore the traditional valuation metrics of P/e and yield but we have a method of assessing companies that is indifferent to capital structure and dividend history.

The thinking is to invest in those companies which are both cheap relative to others in terms of their reported numbers and stable in their performance.

In our research you will see for each company:

  • Market capitalisation and latest reported debt
  • Adjusted operating profit on a 12 month basis
  • Gross cash flow net of CAPEX
  • P/es and yield
  • Risk factor derived from EPS variability

Equity Selection Process (see investment advice)