Introducing the Financial Window (FINDOW) investment algorithm, a proprietary financial tool designed to revolutionize the investment landscape by leveraging its distinct re-pricing model. Developed with a singular focus on identifying robust businesses with significant potential for capital compounding, FINDOW is poised to provide investors with a unique edge in the market. Its proprietary re-pricing model goes beyond conventional strategies, allowing for a dynamic assessment of market conditions and potential investment opportunities. FINDOW’s primary goal is to uncover resilient businesses with substantial growth potential, aligning with a strategic vision to compound capital over time.
Utilising intelligent data and the application of stochastic mathematical techniques prevalent in the Space industry, the FINDOW algorithm boasts two exclusive components that contribute to its investment advantage. The initial element is the FINDOW re-pricing model, employed to determine the equitable value of a stock. Paired with the FINDOW future potential score, the algorithm undergoes rigorous back-testing, consistently outperforming the market. It’s crucial to acknowledge that historical performance does not guarantee future results, prompting the creation of this blog to showcase and document the distinctive returns generated by this algorithm.
FINDOW SCORES
Analysed stocks under the research blog discuss various FINDOW scores achieved and different accolades. Those scores and elements briefly described below:
Quality Score
The FINDOW Quality score serves as a comprehensive metric, encapsulating the resilience of a business through a meticulous assessment of its financial statements. This evaluation encompasses various facets, including revenue, profits, debt, cash, and other critical elements, to gauge the overall efficiency and management of the business. This Score utilises absolute and historical metrics providing a snapshot of the business’s performance. By delving into these multifaceted financial aspects, the FINDOW Quality score offers investors a nuanced understanding of how well the business has been operated.
Score out of 10
1 – 5 = Low Quality
5 – 7 = Average Quality
7 – 10 = Investable Quality
Growth Score
The Growth score within the FINDOW algorithm serves as a vital gauge of a business’s capacity to enhance its financial metrics both historically and in the foreseeable future. This score evaluates trends in various data sets, encompassing revenues, profits, shares issuance, debt, and other pertinent factors. The Growth score provides valuable insights into the business’s trajectory, showcasing its historical performance and projecting potential future developments.
Score out of 10
1 – 5 = Low Growth
5 – 7 = Average Growth
7 – 10 = High Growth
Peer Score
The Peer Score, a crucial component of the FINDOW algorithm, diligently evaluates the performance of a selected stock in comparison to its direct competitors within the same industry. This assessment involves a thorough analysis of numerous financial metrics, measured against industry-normalized values. The ultimate goal is to discern the relative standing of the stock within its industry, aiding in the identification of the best-performing stocks within the most promising sectors.
Score out of 10
1 – 5 = Below Industry Average
5 – 7 = In-line with Industry Average
7 – 10 = Top Industry Performers
Stock potential
Stock market investing hinges on anticipating future trajectories and comprehending a business’s capacity to fulfil those projections. In line with this, the FINDOW algorithm employs a proprietary and rigorously back-tested methodology to gauge a stock’s future potential, primarily rooted in key growth metrics. This forward-looking assessment is typically expressed as a percentage Compound Annual Growth Rate (CAGR).
Type of Stocks
Within the expansive realm of stocks, the FINDOW algorithm is dedicated to identifying three distinct types, each encapsulating unique characteristics. First in line is the “Lunch Keeper,” a designation reserved for stocks that establish a formidable business MOAT, allowing them to steadfastly maintain their leading position within the industry. Following closely is the “Lunch Eater,” an accolade bestowed upon rapidly growing stocks that possess the disruptive capability to redistribute industry dynamics and devour market share from competitors. Lastly, we have the “Cheap Lunch” category, representing stocks often overlooked by the market for seemingly benign reasons. Despite frequently ranking as top peer performers, these stocks tend to carry undervalued potential, revealing a disconnect between their performance and market perception.
Stock types are presented in the research blog under the score system tab.
Valuation & Price
The FINDOW algorithm employs a dual-pronged approach, integrating both classic and proven Discounted Cash Flow (DCF) modelling and a proprietary re-pricing model to evaluate a stock’s fair value. The DCF model adheres to best practices, relying on future cash flow projections discounted back to present value to ascertain a stock’s intrinsic worth. Simultaneously, the FINDOW re-pricing model, a key element in scoring the stock’s financials, determines a fair price by assessing investors’ willingness to pay a specific multiple for anticipated future financial conditions.