Research

ValuEngine Capital Management LLC is a Registered Investment Advisor (RIA) that invests based on the proprietary, quantitative research of ValuEngine Inc.

Over 4,000 US equities, 1,000 Canadian equities, and 600 ETFs (exchange traded funds) are evaluated, screened and analyzed every trading day by ValuEngine’s sophisticated quantitative modeling process.

So who and what is ValuEngine? It is a stock valuation and forecasting service founded by University academics working in tandem with trading professionals. The research company utilizes advanced quantitative techniques and analysis to develop, test, and improve Stock Valuation Models and econometric models for forecasting stock price movement. In recent years, ValuEngine has expanded its research program to include portfolio construction and tracking products.

ValuEngine models are more sophisticated than traditional valuation models. ValuEngine employs a three-factor approach to stock valuation using fundamental variables–the company’s trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company’s forecasted 12-month EPS, and the 30-year Treasury yield–to create a highly accurate reflection of a company’s fair value. Armed with these framework features, the ValuEngine Stock Valuation Model then calculates the ValuEngine proprietary “fair market valuation” for the stock.

The recent work of several Ivy League scholars provide the intellectual theory behind VE’s Stock Valuation Model.

Stock Valuation in Dynamic Economies, Bakshi, Chen, 2001.
A Generalized Earnings-Based Stock Valuation Model, Dong, Hirshleifer, 2004.
Stock Valuation and Investment Strategies, Chen, Dong, 2001.
Investing With a Stock Valuation Model, Chang, Chen and Dong, 1999.

ValuEngine Capital clients enjoy full access to the ValuEngine online research tools on thousands of stocks.

A summary online presentation is available HERE for an introduction to ValuEngine research.