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Frequently Asked Questions

• What are Value Research Stock Ratings?

  

  Over three decades of market analysis, we have learned that successful mid and long-term wealth creation involves investing in companies with strong quality, fair valuation, healthy growth, and are favoured by the market. The Value Research Stock Rating evaluates each stock based on these factors, providing a composite rating.

• How are they useful for investors?

  

  Investing in stocks demands extensive research and analysis. Our stock ratings streamline the process, allowing you to quickly identify promising stocks and make comparisons effortlessly, relying on our ratings instead of sifting through numerous financial parameters.

• How have we derived the stock ratings?

  

  The first step in the stock rating process is to arrive at the quality, growth, valuation, and momentum rating of each company, based on our proprietary algorithm-based methodology. The stock rating is a composite of these four ratings - quality, growth, valuation, and momentum ratings. You can read the detailed methodology here.

• Does a high stock rating guarantee high returns?

  

  Stock ratings serve as a good starting point for filtering. A good rating means the company stacks up well on quality, growth,and momentum besides the stock not being very pricey. A high stock rating does not mean guaranteed high returns in the future. However, high composite-rated stocks have performed better over five years (starting 2014) Click here for the detailed report.

• Are stock ratings foolproof?

  

  The markets are unpredictable and would never allow for a foolproof rating. But our ratings can help you ditch the duds and focus on stocks with the key ingredients needed to beat the market.

• Are stock ratings for short-term or long-term investors?

  

  It is near-impossible to predict the market in the short term. Our rating methodology is rooted in mid- to long-term investing principles.

• How frequently are stock ratings updated?

  

  Stock ratings are refreshed on a daily basis before the market opens. However, note that several financial parameters might change only on a quarterly basis.

• Which stocks are eligible for a rating?

  

  We have rated nearly all the listed companies on the exchanges. However, the following categories of companies have been excluded:

  • Companies that have not traded in the last one month.
  • Companies whose latest financials are not available.
  • Companies that do not have a three-year history.
  • Companies with low trading history in the last three years.
  • Companies that have had zero sales for any period in the last three years.
  • Companies with accumulated losses or negative net worth on the latest balance sheet.
  • Companies that account for the bottom one per cent of the total market capitalisation of all the listed companies.

• Where can I find Stock Ratings?

  

  Value Research Stock ratings are available on the respective stock pages. Simply enter the name of the stock in the search bar, select the stock from the dropdown and press enter.

• How can I filter stock based on ratings?

  

  Stock can be filtered based on ratings from our Stock Screener. Users can add the ratings as criteria and set their parameters.