Why you should use Value Research Stock Ratings

Investing in stocks is no less than watching a seed grow into a tree. You spot the right business and watch it weather storms, grow and make you rich.

But picking the right businesses from a sea of duds demands hours of exhaustive analysis, delving into countless metrics.

That's where Value Research Stock Ratings swoops in, aiming to simplify stock investing and streamline the entire process. It can help you quickly identify promising stocks with the potential to beat the market and make comparisons effortlessly without sifting through numerous financial parameters.

Also, by relying on our novel rating system, you can identify stocks with a higher probability of weathering market storms, allowing you to ride out the ups and downs more smoothly.

Numbers back our claims. We rigorously tested our rating system on historical data spanning a decade. First, we constructed two equally weighted portfolios comprising our top-rated (four and five-star composite ratings) and low-rated stocks (one and two stars), respectively, for each of the last ten years starting FY14. Next, we checked how each of these portfolios performed in the subsequent five years against the BSE 500 index*.

The portfolio of our top-rated stocks outperformed the benchmark index 83 per cent of the time!

Apart from the above, we conducted another exercise to assess the robustness of our ratings. We created five equal-weighted portfolios, each comprising stocks of a single rating category (1-5 stars). Next, we calculated the five-year annualised returns of each portfolio for consecutive five-year periods starting FY14. Next, we calculated the average of these five-year annualised returns for each portfolio and compared it against the BSE 500 index. The results are shown alongside.

Who should use Value Research Stock Ratings

Value Research Stock Rating is based on our long-term investing principles. Our rating system may not help you gain from the unpredictable wild movements of some of our low-rated stocks. That is the nature of the markets.

But if your goal is to build long-term wealth, Value Research Stock Ratings should be an indispensable part of your investing journey. It can give you the edge you need to get rich off the markets.

Also read: Are your stocks financially healthy?