EDELSCORE - The one number that you should be aware of
 

 
EDELSCORE  
 
 
 
  • EDELSCORE is a score that the company has earned on the basis of its core fundamentals

  • EDELSCORE shows whether a company is fundamentally sound & the level of risk inherent in the company

  • EDELSCORE can range from...

    • 10 - Fundamentally Strong Company to
    • 1 - Fundamentally Weak Company
 
 
Short Term Med. Term Long Term  
      Fundamental
      Technical
      Quant
      Derivative
 
  EDELSCORE Interpretation    
 
 
  • A low EDELSCORE implies higher risk coupled with weak fundamentals. Hence, investors should stay away from low EDELSCORE stocks till they have many other reasons to believe that one of those stocks is a ‘Buy’

  • EDELSCORE will not explicitly tell you to go out & buy with a target & stop loss price, it just wants to alert you about what business you are about to buy & whether it is fundamentally strong or not

 
 
 
  EDELSCORE: Why should you be aware of it?    
 
 
  • EDELSCORE is a capsulated number that is arrived at after considering numerous fundamental factors for the past 3 years

  • EDELSCORE helps in instantly knowing about the fundamentals of the company, a leap forward for investors who are intimidated by long drawn process of fundamental analysis

  • Investors generally pile up on shares, buy again & again to average their cost of purchase, without being aware of the inherent business / investing risk, hence concentrating their portfolios into some weak businesses; all of this is what we believe a portfolio disaster

  • Hence, we recommend being aware of EDELSCORE before taking the first stride into buying a stock

 
 
 
  The EDELSCORE Advantage    
 
 
  • Simple and quick way to determine if company is worth studying

    • Screening Shorthand

  • Simple and quick way to determine if company is worth keeping

    • Portfolio Management Shorthand

  • Simple and quick communication through numbers from

    • 10 - Top Score to
    • 1 - Bottom Score
 
 
 
  EDELSCORE Objective    
 
 
  • To give a fundamental view on every stock

  • To highlight strong companies with long standing competitive advantage

  • To alert investors on fundamentally weak companies & help them make informed decisions

  • To help investors leap through manipulative activities of market operators

 
 
 
  EDELSCORE Computation    
 
 
  • EDELSCORES are computed on the basis of annual financial results based on data available for past 3 years

  • EDELSCORE is assigned to each company on core fundamental factors assigned by our proprietary model

 
 
 
  Sector EDELSCORE    
 
 

EDELSCORE has been given to individual sectors as well as sub-sectors. This facilitates comparison of stock vis-à-vis the sector and the sub-sector and helps ascertain fundamentally best / worst stocks in a sector. Clients can use this information to switch between stocks in a sector.

 
 
 
  EDELSCORE Back-tested Performance    
 
 

Back-tested results for all companies excluding financial companies based on 3 yearly data available for the past 5 years indicated the following:


  • Companies with low EDELSCORE have a greater chance of being suspended from the exchanges and causing financial harm to investors

  • Companies with high EDELSCORE exhibit lower ex-ante risk as suggested by ‘maximum drawdown’

  • Companies with high EDELSCORES have been owned in a greater degree by FII’s, implying that low scored stocks aren’t favored / believed by them either

 
 
 
  EDELSCORE: Transition Probabilities Back-tested results    
 
 

Sample Results: 2008-09

 
 
 
  EDELSCORE vs MAXIMUM DRAWDOWN Back-tested results    
 
 

Sample Results: 2008-09

 
 
 
  EDELSCORE vs %age FII SHAREHOLDING Back-tested results    
 
 

Sample Results: 2008-09

 
 
 
 
 

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