The Price Performance Model
The Price Performance Model ranks stocks based on both qualitative and quantitative assessments, as follows:
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Mazama’s Industry Research
Ten criteria we use to identify the industry's view of current and foreseeable quality of a company’s people, products and services.
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Mazama’s Timeliness Ranking
Fourteen criteria we use to assess the product/service ramp’s impact on current and future financial statements and stock movements.
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Mazama’s Proprietary Growth Valuation
Identifies companies with outstanding financial return on equity to shareholders relative to the estimated price/earnings ratio.
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Other Investor’s Best Valuation
Identifies when other investors will begin to buy/sell securities based upon estimated EPS growth relative to the forward P/E multiple.
The model is linked to current stock, allowing us to rank our universe of attractive growth opportunities in real time. It can be used not only as a stock selection process, but is also an effective portfolio management tool.
Ron Sauer originally developed and utilized the Price Performance Model for stock selection purposes in the early 1980’s, and it has been the foundation of Mazama's investment process since the inception of our first portfolio in 1993.