Value Investing Blog - Data-Driven Analysis &amp; Guides

Indicator Explained11 min read

CAGR in Investing: How to Use Compound Annual Growth Rate to Evaluate Stocks

CAGR is the single most useful rate for comparing investments across different time periods. Learn the formula, why CAGR beats simple average returns, how to use it in DCF models, and why revenue CAGR diverging from earnings CAGR is a red flag worth investigating.

May 19, 2026

Free Cash Flow Investing: Why FCF Is the Most Important Metric for Value Investors

Free cash flow -- operating cash flow minus capital expenditures -- is the metric Warren Buffett built his fortune on. Learn why FCF matters more than EPS, how to calculate FCF yield, the FCF conversion rate quality test, and how to screen for FCF compounders in ValueMarkers.

May 19, 2026

Indicator Explained11 min read

Graham Number: Benjamin Graham's Formula for Finding Undervalued Stocks

The Graham Number combines earnings per share and book value per share into a single intrinsic value estimate. Learn the formula, what the 22.5 multiplier means, how to calculate it step by step, real-world case studies on JPM, BAC, and INTC, and when not to use it.

May 19, 2026

Indicator Explained10 min read

How to Value a Bank Stock: P/TBV, ROE, and Net Interest Margin Explained

Standard valuation multiples break down for banks because leverage is their core business model, not a risk to be penalized. The right framework uses P/Tangible Book Value, ROE, Net Interest Margin, and the efficiency ratio. Here is the complete guide to bank stock valuation.

May 19, 2026

Price-to-Book Ratio: Benjamin Graham's Favorite Valuation Metric

Benjamin Graham used P/B below 1.5 as one of his two primary stock filters. Learn when P/B still works, why intangibles have eroded its usefulness in knowledge-economy industries, how P/TBV differs, and how to combine P/B with ROE for a powerful quality-value screen.

May 19, 2026

Indicator Explained10 min read

Return on Equity (ROE): How Buffett Uses It to Find Compounders

Warren Buffett has used Return on Equity as one of his primary screening criteria for over 50 years. Learn his 15% ROE threshold, the DuPont decomposition, how to separate earned ROE from leveraged ROE, the 10-year consistency test, and how to use ROE alongside ROIC to find Buffett-style compounders.

May 19, 2026

WACC Explained: How to Calculate the Weighted Average Cost of Capital

WACC is the discount rate used in DCF analysis to convert future cash flows into today's dollars. Learn the full formula, how to calculate cost of equity via CAPM, cost of debt, typical WACC ranges by industry, and how the ROIC-WACC spread measures value creation.

May 19, 2026

Indicator Explained8 min read

Altman Z-Score: The Complete Guide to Predicting Bankruptcy Risk

Edward Altman's 1968 model combines five financial ratios into a single score that predicts bankruptcy risk with documented accuracy. Learn the original formula, the three zones (Distress, Grey, Safe), Z' and Z'' variants, and how value investors use it as a portfolio filter.

May 19, 2026

Altman Z-Score: How to Predict Bankruptcy Risk Before It Happens

Professor Altman's 1968 model combines five financial ratios into a single score that flags bankruptcy risk years in advance. Learn the formula, the three zones, famous cases like Enron and Lehman Brothers, and how to use the calculator today.

May 17, 2026

Beneish M-Score: How to Detect Earnings Manipulation

Professor Messod Beneish's 1999 model uses eight financial ratios to flag companies likely manipulating their earnings. Learn how DSRI, GMI, AQI, SGI, DEPI, SGAI, LVGI, and TATA work, how the -2.22 threshold was derived, and how the model caught Enron and WorldCom.

May 17, 2026

Indicator Explained8 min read

ROIC vs ROE: Which Quality Metric Actually Matters?

ROIC and ROE both measure how well a company converts capital into profit — but they answer fundamentally different questions. This guide explains why ROIC is superior for most analytical purposes, why ROE can be gamed with debt, and how ROIC above WACC is the clearest signal of genuine value creation.

May 17, 2026

Piotroski F-Score: The 9-Point System for Finding Strong Stocks

The Piotroski F-Score is a 9-point accounting-based scoring system that identifies financially strong stocks. Learn all 9 criteria, how to interpret results, and what the backtesting evidence shows.

May 17, 2026

Indicator Explained10 min read

Your Complete Altman Z Score Checklist for Stock Analysis

The Altman Z Score distills bankruptcy risk into one number. This checklist walks you through every step of calculating and interpreting it correctly.

April 10, 2026

Free Cash Flow to Firm: What the Data Tells Value Investors

Free cash flow to firm measures the cash a business generates before servicing debt, making it one of the most reliable inputs for intrinsic value analysis.

April 10, 2026

How to Find the Z Score Using Excel: Answers to the Most Common Questions

A practical FAQ guide on how to find the z score using Excel, covering the Altman formula, cell setup, and what the output means for stock analysis.

April 10, 2026

Is Fcf Gaap | ValueMarkers — Complete Guide for Value Investors

Answers to common questions about is fcf gaap. Includes real data, examples, and expert analysis for investors. Free cash flow is not a GAAP metric.

April 10, 2026

How to Master Piotroski Stock Screener [Step-by-Step Guide]

Step-by-step tutorial on piotroski stock screener. Learn the process with real stock examples and practical tips for investors.

April 10, 2026

Understanding Dow Jones Share Index: What Every Investor Should Know

The dow jones share index is a price-weighted measure of 30 blue-chip U.S. stocks. Here is what that design means for how you read and use it.

April 9, 2026

What Is Machine Learning on Stock Market and Why It Matters for Stock Analysis

Machine learning on the stock market uses algorithms to detect patterns in financial data that traditional analysis misses.

April 9, 2026