Designed to give a broad overview of an investment at a particular point in time, Aurora’s Global Evaluation Metric combines multiple factors which we outline in more detail below. These include fundamental and technical elements such as Valuation, Earnings Revisions Trend, Technical Trends and Group Benchmarking, along with sensitivity (Risk) ratings based on the “Bear Markets” and “Bad News” Factor Metrics. These factors are then visualised as a simple volume bar where indicates the best possible rating and indicates the worst.

This metric incorporates several factors (each of which is outlined in more detail below) and includes:

• Earning Revision Trend
• Valuation Rating
• Medium Term Technical Trend and (Market Trend)
• 4-week Relative Performance > 1%

We assess performance against each of these metrics and award a 0 to rating.

This is an abbreviation for 7 week Earnings Per Share Revision. This column concerns the value of these revised earnings. A figure of 2.8 implies that the analysts, compared with seven weeks ago, have now revised and raised their estimates by 2.8%. On the contrary, a negative number means that the earnings were revised at a lower estimate.

If the earnings revision is between -1% and 1% the analysts estimates are neutral.

We use Peter Lynch’s valuation methodology to assess whether a stock is trading at fair value, premium (over-valued) or discount (under-valued). This method compares expected earnings increase + dividend yield with estimated multiplier ratio.

Based on this approach a ratio below 0.9 indicates that investors must pay a premium for the growth potential since the stock is more highly valued and if the ratio is above 0.9, the stock is undervalued.

“Since Lynch was always looking for strong growth companies he could not use the traditional Price Earnings ratios as means for valuation because the markets would often bid those stocks up on expectations. So he created a metric called PEG which stood for Price Earnings Growth. The idea was that if a company was growing at 15% per annum then 15 P/E was a reasonable price to pay for the stock. It’s a simple shortcut that ignores many macro fundamentals but that was precisely the point. It was used as a rough measure to make sure that the investor did not grossly overpay for a stock ( for example buying a stock at 50 P/E for a company that was growing at only a 10% rate).” – Boris Schlossberg, BK Asset Management

MT Tech Trend is a technical indicator which we use to provide an assessment of whether the market like an investment or dislike it. If it is positive it indicates that the market currently “likes” (or, is buying) the stock. If it is negative it indicates that the market currently “does notlike” (or, is selling) the stock.

This figure measures the performance of a STOCK relative to its national or regional index in the last 4 weeks).

This figure measures the performance of a FUND relative to its benchmark in the last six month.

This is the estimated annual growth rate of future earnings. It is normally projected over the next two to three years, and is expressed as a percentage.

The G/PE Ratio is the basis of our Valuation Rating (above) and is expressed as the estimated growth of future earnings (LT Growth) plus dividend in %, divided by the estimated future PE ratio (Long Term P/E).

Select from small, medium or large firms.

A dividend is a distribution of profits by a company to its shareholders when it earns a profit or surplus and Aurora lets you select what kind of level of dividend payment you want as an element of your factor-based strategy

Stock price movements are generally volatile and contain sensitivity that can result in a total loss. Based on their historical behaviour, we classify stocks by sensitivity level which are assessed solely relative to other stocks.

It should be noted that even Low Sensitivity stocks remain highly sensitive investments that can lose up to all of their value, and that past performance is no indication of current or future performance.

We determine Sensitivity by measuring the “Bear Market” Factor and the “Bad News” Factor against the benchmark and identify three levels:

• Low Sensitivity: In this case, the sensitivity indicators fall below the world reference average.
• Moderate Sensitivity: In this case, the sensitivity indicators are higher than the world reference average, but lower than the standard deviation.
• High Sensitivity: At which the sensitivity indicators are at levels higher than the standard deviation.