How does TransparentShare work?
Daily stock valuation based on objective key figures.
Find out which stock is worth buying – and when the right time is to sell.
And this is how it works:
Automated and data-based stock valuation
All stocks are evaluated fully automatically every day after the stock market closes – objectively, data-based, and entirely without emotion. Companies from leading markets worldwide – including Germany, Europe, the US, and Asia – are evaluated.
When is a share a buy recommendation?
The rating of a share is calculated from the Sum of 12 metricsEach indicator can have a value of +1, 0, or -1. A stock is recommended for purchase if the sum of the indicators reaches at least 4 points (large companies) or 6 points (small and medium-sized companies).
Learn more about the 12 key figures and the evaluation criteria in this article.
Purchase recommendation with additional filter: The distance
You can decide for yourself whether you want to use the so-called "Distance" should be considered. In this case, only those stocks are recommended whose current price at least 10% below the annual high This will help you avoid buying overpriced stocks.
You can easily activate this function in the menu item "Settings" under: “Use spacing for evaluation”
The distance is the percentage difference between the current share price and the 52-week high (annual high).
When is a share recommended for sale?
Keep track of your shares in your portfolio – and recognize in good time when it is time to sell a position.
A stock is recommended for sale if its rating falls below 0 points (i.e., from -1 point). This is a clear signal that the key figures have deteriorated.
Receive email notifications - which stock to buy?
Never again miss the right time to buy or sell a stock.
Receive automatic email notifications when a stock is recommended for purchase or sale. This way you will also become aware of stocks you don't yet know about.
To do this, select from the menu item „Settings" and then the indicator "Receive purchase and sales recommendations as email".
Show historical rating
Get an overview of how the stock has been valued over the last 3 months.
Use anywhere and don't miss a thing
Use TransparentShare on your phone, tablet, laptop, or PC. On a PC, you can find the application under https://app.transparentshare.com start.
Alternatively, the app can be downloaded from the Apple Store or Google Play Store.
The rating is made up of 12 key figures
Our method combines proven strategies from leading stock market experts with her own experience and practical development. She was inspired by well-known works of financial literature, including The Intelligent Investor by Benjamin Graham and The relaxed path to wealth by Susan Levermann.
On this basis, we have developed an independent evaluation system. It was specifically designed for daily, fully automated analysis of shares and is consistently focused on the digital use aligned.
The key figures in detail
Definition
Return on equity is the ratio of a company's profit to equity. The net income of the last reported year is used for the calculation.
Significance for the evaluation
The higher the return on equity, the faster the company value increases. A high return on equity can be seen as protection against bad times.
Calculation
Return on equity in % = (net income / equity) * 100
Rating
+1 point: return on equity> 15%
0 points: return on equity between 10% and 15%
-1 point: return on equity <10%
Example
Allianz: Return on equity = (11.4 billion / 66.3 billion) * 100 = 17.23 % –> +1 point
Definition
The equity ratio describes the share of equity in the total capital (equity + debt) of a company.
Significance for the evaluation
A high equity ratio shows that a company is less dependent on debt capital and can have a larger financial buffer in economically difficult times.
Calculation
Equity ratio = (equity / total capital) * 100
Rating
+1 point: equity ratio> 25%
0 points: Equity ratio between 15% and 25%
-1 point: equity ratio <15%
Example
BMW: Equity ratio = 36.81 % –> +1 point
Industry-specific evaluation
The equity ratio is assessed differently depending on the industry, as business models require different capital structures.
Technology companies typically have higher equity ratios, while financial companies (e.g., banks, insurance companies, real estate companies, financial service providers) deliberately operate with lower equity ratios.
Therefore, adjusted thresholds are used for these industries:
Technology companies
+1 point: Equity ratio > 45%
0 points: Equity ratio between 30% and 45%
-1 point: Equity ratio < 30%
financial companies
+1 point: Equity ratio > 10%
0 points: Equity ratio between 5% and 10%
-1 point: Equity ratio < 5%
The pre-tax profit margin expresses how profitable a company is. A high margin is a sign of high profitability. Inexpensive manufacturing companies can achieve higher margins more easily than companies with a high cost pool.
However, for financial companies (e.g. banks, insurance companies, real estate companies, financial service providers) this metric is not meaningful and is therefore not evaluated, as their business models are heavily based on the use of debt capital.
-1 point: pre-tax profit margin <6%
To fairly account for this growth, adjusted thresholds are used for technology stocks:
For all other industries, the standard thresholds apply.
To fairly account for this growth, adjusted thresholds are used for technology stocks:
For all other industries, the standard thresholds apply.
Definition
Percentage by which the price of the share has changed in comparison to the index over the past 12 months.
Significance for the evaluation
This indicator shows whether the stock has trended upwards or downwards over the last 12 months. The stock's performance is compared to the index (market average) to determine whether it has outperformed or underperformed.
Calculation
Price change in the last 12 months compared to the index = price change of the share in the last 12 months - price change of the index in the last 12 months
Rating
+1 point: price change in the last 12 months compared to the index> 5%
0 points: Price change in the last 12 months compared to the index between -5% and + 5%
-1 point: price change in the last 12 months compared to the index <-5%
Example
BMW: Share price change +4.68 % – Index change +1.80 % = +2.88 % –> 0 points
Definition
The price momentum shows whether a share changes from a falling or constant trend to an upward trend or from a rising or constant trend to a downward trend.
Significance for the evaluation
The price change of the last 6 months is compared with the price change of the last 12 months in order to determine an upward or downward trend. In the case of an upward trend, the share rises faster than the index in the last 6 months and significantly more than the price change over the last 12 months.
Calculation
Score for course change in the last 6 months compared to the score for course change in the last 12 months
Rating
+1 point:
Course change in the last 6 months +1 and course change in the last 12 months 0 or -1
-1 point:
Course change in the last 6 months -1 and course change in the last 12 months 0 or 1
0 points: other cases
Example
BMW: Share price change over the last 6 months: 0 points; Share price change over the last 12 months: 0 points –> 0 points
Definition
Compare the profit estimate for the next year with the profit estimate for the current year
Significance for the evaluation
A higher profit estimate for the next year indicates a positive business development.
Calculation
Expected profit growth = ((Earnings estimate next year – Current year profit) / Current year profit (in %)) * 100
Rating
+1 point: Expected earnings growth> 5%
0 points: Expected earnings growth between -5% and + 5%
-1 point: Expected earnings growth -5%
Example
BMW: Expected profit growth = (9.00 – 8.50) / 8.50 * 100 = +5.88 % –> +1 point
Definition
Change in profit estimate in the current year or next year compared to the value 4 weeks ago.
Significance for the evaluation
Profits are estimated by analysts. If the earnings estimate is changed for the current or next year, analysts expect positive or negative developments in the share.
Calculation
Change in profit estimate = (current profit estimate - profit estimate 4 weeks ago) / profit estimate 4 weeks ago (in percent)
Rating
+1 point: change in profit estimate> 5%
0 points: Change in profit estimate between -5% and + 5%
-1 point: change in profit estimate -5%
Example
BMW: Change in profit estimate = (9.00 – 9.40) / 9.40 * 100 = -4.62 % –> 0 points
Definition
Public companies publish their quarterly report every quarter. On the day on which the numbers are announced, the percentage development of the share is compared with the development of the index.
Significance for the evaluation
If the share rises more than the index on the day the quarterly figures are announced, the figures are rated positively by the market. If the shares fall more than the index, the numbers are rated negatively.
Calculation
Reaction to quarterly figures: Change in the share on the day of publication - Change in the index on the day of publication
Rating
+1 point: reaction to quarterly figures compared to index> 1%
0 points: Reaction to quarterly figures compared to the index between -1 and + 1%
-1 point: Reaction to quarterly figures compared to the index <-1%
Example
BMW: Reaction to quarterly figures on March 12, 2026 = +0.87 % – -0.21% = +1.08 % –> +1 point
Definition
The ratio is calculated by dividing the current share price by the book value per share. The book value is obtained by adding up everything the company owns (machines, buildings, computers) and subtracting the debts. The book value corresponds to the actual value of the company.
The book value of a company corresponds to the sum of the equity of a company.
Significance for the evaluation
The P / B indicates whether the stock exchange price is higher or lower than the actual value per share. With a P / B below 1, one could theoretically buy the company for less money than it is worth according to the balance sheet.
However, this metric is of limited use for technology companies, as a large portion of their value often consists of intangible assets (e.g., software, data, brands) that are not fully reflected in the balance sheet. Therefore, the price-to-book ratio (P/B ratio) is not evaluated for technology stocks.
Calculation
Price to book ratio = price of the share / equity per share
Rating
+1 point: price-to-book ratio < 1.5
0 points: price-to-book ratio between 1.5 and 2.5
-1 point: price-to-book ratio > 2.5
Example
BMW: KBV 0.53 –> +1 point
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