How does TransparentShare work?

Daily stock valuation with data-based key figures based on the Levermann strategy.
You can get help with the questions: Which stock to buy? When is the right time to sell?

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Automated and data-based stock valuation

All stocks are automatically valued daily after the market closes. The valuation is based on publicly available price, company and market data. German, American and European stocks are rated.

The stock is recommended for buying

The stock is being watched

The stock is not a buy recommendation

When is a share a buy recommendation?

The rating of a share is calculated from the Sum of 12 metrics. Each metric can have a value of +1, 0, or -1. A share is recommended for purchase if the sum of the key figures reaches at least 4 points (DAX, S&P 500, EURO STOXX 50) or 6 points (MDAX, SDAX, CDAX).

The method of determining the key figures is based on the successful one Levermann strategy. because of our 10 years experience we have further optimized the strategy.

Note: You cannot buy or sell stocks in the application.

Configure recommendation criteria

You have the option of choosing whether, in addition to the rating, the criterion "distance“ is taken into account. Shares will then only be recommended for purchase if the current share price is at least 10% below the year's high. In order to use this functionality, you must select the "Use distance for rating" choose.

We call the "distance" the percentage difference between the current share price and the year's high. The distance regulation is intended to help find cheap stocks.

Receive sell recommendations for purchased stocks

Keep track of your shares and be informed when a share is recommended for sale.

When is a share a sell recommendation?

A stock is recommended for sale if that rating of the stock falls below 0 points.

Receive email notifications - which stock to buy?

Never again miss the right time to buy or sell a stock.

Receive an automated e-mail notification when a share is recommended for buying or selling.

To do this, select the menu item "profile" and then the indicator "Receive purchase and sales recommendations as email".

Show historical rating

Get an overview of how the stock has been rated over the past 3 months.

Use anywhere and don't miss a thing

Use TransparentShare on your mobile phone, tablet, laptop or PC. The application can be launched on the PC with https://app.transparentshare.com .

Alternatively, the app can be downloaded from the Apple Store or Google Play Store.

The rating is made up of 12 key figures

The method of determining the key figures is based on the Levermann strategy, which Ms. Susan Levermann described in her book "The relaxed way to wealth".

Because of our 10 years of experience with the method we have expanded the method. The Levermann expert Petra Wolff reported very positively about our optimizations.

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
Lufthansa (02/10/2017): Return on equity = (1.722M / 5.768M) * 100 = 29.85% -> +1 point

Definition
The equity ratio describes the share of equity in the total capital (equity + debt) of a company.

Significance for the evaluation
The equity ratio is an indicator of a company's creditworthiness. A high equity ratio reduces the risk of insolvency and, conversely, means lower debt.

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
Lufthansa (02/10/2017): Equity ratio = 18.01% -> 0 points

Definition

A company's earnings before interest and taxes (EBIT - Earnings Before Interests and Taxes) in relation to the company's sales. The data reported for the last year is used for the calculation.

Significance for the evaluation

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. Note: This ratio does not apply to financial stocks.

Calculation

Pre-tax profit margin in % = (EBIT / sales) * 100

Rating

+1 point: pre-tax profit margin> 12%

0 points: pre-tax profit margin between 6% and 12%
-1 point: pre-tax profit margin <6%

Example

Lufthansa (02/10/2017): pre-tax profit margin = 6.85 % -> 0 points

Definition

The price / earnings ratio describes the relationship between the current share price and the annual earnings per share. It describes how many years it takes for a company to generate the value of its shares as a profit. The P / E relates to the forecast earnings per share for the coming year.

Significance for the evaluation

The P / E ratio is an important key figure for assessing the earning power and development of a company compared to others. The lower the P / E ratio of a share, the cheaper the share appears. Low P / E stocks have historically generated higher returns.

Calculation

Price / earnings ratio = share price / earnings per share

Rating

+1 point: current PER <12

0 points: current PER between 12 and 16

-1 point: current PER> 16 or <0

Example

Lufthansa (February 10, 2017): current PER = 6.38 -> +1 point

Definition

The average price-earnings ratio over 5 years expresses how the current price of the share and the average annual profit per share relate to one another over 5 years. The reported figures from the past 3 years as well as the expected figures for the current and the next year are used.

Significance for the evaluation

The P / E ratio is an important key figure for assessing the earning power and development of a company compared to others. Using the 5-year average helps even out fluctuations.

Calculation

P / E ratio over 5 years = share price / ((profit 3 years ago + profit 2 years ago + profit 1 year ago + profit current year + expected profit next year) / 5))

Rating

+1 point: PER over 5 years <12

0 points: PER over 5 years between 12 and 16

-1 point: PER over 5 years> 16 or <0

Example

Lufthansa (3.2.2017): PER over 5 years = 5.59 -> +1 point

Definition

Percentage by which the share price has changed in comparison to the index in the last 6 months.

Significance for the evaluation

The key figure shows an upward or downward trend in the share in the last 6 months. The development of the share is related to the index (market average) in order to see whether the share has performed above or below average.

Calculation

Price change in the last 6 months compared to the index = price change in the share in the last 6 months - price change in the index in the last 6 months

Rating

+1 point: price change in the last 6 months compared to the index> 5%

0 points: Price change in the last 6 months compared to the index between -5% and + 5%

-1 point: price change in the last 6 months compared to the index <-5%

Example

Lufthansa (02/10/2017): change in the share + 15.28% - change in the index + 8.68% = + 6.60% -> 1 point

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
The key figure shows an upward or downward trend in the share over the past 12 months. The development of the share is related to the index (market average) in order to see whether the share has performed above or below average.

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
Lufthansa (02/10/2017): change in the share + 3.88% - change in the index + 8.68% = -4.80% -> 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
Lufthansa (3.2.2017): Course change in the last 6 months: 1; Course change in the last 12 months: -1 -> +1 point

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 Earnings Growth = (Earnings Estimate Next Year - Earnings Current Year) / Earnings Current Year (in %)

Rating
+1 point: Expected earnings growth> 5%
0 points: Expected earnings growth between -5% and + 5%
-1 point: Expected earnings growth -5%

Example
Lufthansa: Expected profit growth = (2.29 - 1.99) / 1.99 * 100 = 15.08% -> +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
Lufthansa: Change in profit estimate = (1.99 - 1.95) / 1.95 * 100 = 2.05% -> 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
Lufthansa (February 10, 2017): Reaction to quarterly figures on November 2, 2016 = -2.44% - -1.47% = -0.97% -> 0 points

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.

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
Lufthansa (February 10, 2017): KBV 1.17 -> +1 point

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Pricing

How does TransparentShare work?

Automated and data-based stock valuation

When is a share a buy recommendation?

Configure recommendation criteria

Receive sell recommendations for purchased stocks

Receive email notifications - which stock to buy?

Show historical rating

Use anywhere and don't miss a thing

The rating is made up of 12 key figures

The key figures in detail

Test for 14 days.
Ready to go in 30 seconds.

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How does TransparentShare work?

Automated and data-based stock valuation

When is a share a buy recommendation?

Configure recommendation criteria

Receive sell recommendations for purchased stocks

Receive email notifications - which stock to buy?

Show historical rating

Use anywhere and don't miss a thing

The rating is made up of 12 key figures

The key figures in detail

Test for 14 days. Ready to go in 30 seconds.

Legal

Sitemap

Social networks

Newsletter

Test for 14 days.
Ready to go in 30 seconds.