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Traditional Value Management
Investment Process Overview: Financial Quality
Model
- Stocks are given a decile rank for financial
ratios in the following areas:
- Growth
- Profitability
- Leverage
- Liquidity
- A stock's overall financial score is the
average of the company's decile ranks
- Stocks with scores higher than 7.9 are
eliminated from further consideration
Assessing financial strength, this model helps us guard against holding
the stocks of companies that are financially unsound.
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