Summary
TransparentShare has comprehensively revised its valuation methodology for technology stocks. The assessment of the price-to-earnings ratio (P/E ratio), equity ratio, and price-to-book ratio (P/B ratio) has been adjusted to better reflect the specific characteristics of technology companies.
In a simulation of all buy and sell recommendations from January 2019 to September 2025, the new method would have yielded an average result of... 13.88 % Performance per trade achieved – instead of the previous 11.03 %. This corresponds to a Increase of 25.8 %, namely without dividends. This means that TransparentShare, with its new valuation logic, is significantly outperforming the benchmark indices. MSCI World, DAX and Euro Stoxx 50 during the same period.
What does "Trade" mean at TransparentShare?
In TransparentShare, a trade refers to the complete buying and selling process of a stock. This encompasses the period between the buy recommendation in the app and the point at which a sell signal is issued for the same stock. It should not be confused with short-term day trading, as TransparentShare focuses on medium- to long-term investment decisions.
The optimization is based on the results of over 1,000 simulations, the creation of which using artificial intelligence This led to more realistic assessments, better decision-making criteria, and, in retrospect, better performance.
The new rating logic has been available to all users in the TransparentShare app since November 5, 2025.
⚠️ Important:
To benefit from the new rating method, you need to install the latest app version. The new rating logic and optimized thresholds are only active in the latest version. If you use TransparentShare via a browser, you don't need to do anything; the new rating method is already active there.
Start TransparentShare in your browser now
Update the app now:
Download the latest version directly from the Apple App Store or the Google Play Store:
Table of contents
- Optimized valuation method for technology stocks
- Why the new evaluation method was necessary
- Over 1,000 simulations with artificial intelligence support
- What exactly has changed?
- The result: noticeably better performance
- Results for technology stocks
- TransparentShare shows better performance: Top 10 technology stocks
- Comparison with the most important stock indices
- What this means for you
- Transparent methodology – measurable results
- Try it now and benefit!
Video about the new evaluation method
Hereinafter Video Andreas Hauser, founder and CEO of TransparentShare, explains what changes have been made to the valuation method, why they were necessary, and what advantages this offers you as a user.
Optimized valuation method for technology stocks
TransparentShare has reached the most significant milestone in the app's history: The valuation methodology for technology stocks has been fundamentally revised, resulting in significantly improved performance in retrospect. Learn how these changes were made and what they mean for you as an investor.
The result is convincing.
In a simulation of all buy and sell recommendations from January 2019 to September 2025, the new method would have achieved an average performance of 13.88 % per purchase and sale transaction achieved – instead of the previous 11.03 %. This corresponds to a Increase of 25.8 %, namely without dividendsThis means TransparentShare significantly above the benchmark indices MSCI World, DAX and Euro Stoxx 50 and thus demonstrates above-average performance during this period.
This improvement was made possible by artificial intelligenceMore than 1,000 simulations were conducted to determine the optimal thresholds for technology companies.
Note: The calculation is based on a retrospective simulation of TransparentShare valuations between January 2019 and September 2025. Future performance cannot be guaranteed. Individual purchases may vary, as the calculation averages all buy and sell signals.
For stocks that still had a buy recommendation on the cut-off date of September 30, 2025, and had not received a sell signal, the price on that date was used as the simulated selling price. This ensured that all recommendations were uniformly incorporated into the calculation of the average performance per buy and sell transaction.
This approach allows for a complete evaluation up to the cut-off date, but may result in the performance of individual open positions deviating from the actual future development.
View the new rating method in the app now.
Why the new evaluation method was necessary
Technology companies differ significantly from traditional industrial or financial stocks. Their balance sheet structure, growth rates, and valuation metrics follow their own rules. The old valuation logic failed to adequately account for these differences, distorting the valuation of technology stocks.
1. Price-to-earnings ratio (P/E ratio)
In recent years, the average price-to-earnings ratio (P/E ratio) of technology stocks has been around 30. However, TransparentShare has previously valued all sectors equally.
- P/E ratio below 12: +1 point
- P/E ratio between 12 and 16: 0 points
- P/E ratio above 16 or less than or equal to 0: -1 point
This led to many technology stocks being considered "expensive" even though they were fairly valued within their sector. The new method corrects this with more realistic thresholds.
2. Equity ratio
Technology companies often have a solid equity ratio because they need to finance less capital-intensive assets and tend to operate with less debt. Since 2019, the average equity ratio for technology companies has been around 44 percent. The previous valuation thresholds were therefore set too low and did not adequately reflect these specific characteristics.
3. Price-to-book ratio (P/B ratio)
Technology companies typically own few physical assets. Their value is based on intangible assets such as software, patents, trademarks, data, and technical know-how. These assets rarely appear on the balance sheet, which is why the price-to-book ratio is not a reliable metric in this sector.
Therefore, TransparentShare will no longer consider the price-to-book ratio (P/B ratio) for technology stocks. This will make valuations more realistic, transparent, and better aligned with the specific characteristics of this sector.
Over 1,000 simulations with artificial intelligence support
To determine the optimal thresholds for the evaluated key performance indicators (KPIs), our team conducted a comprehensive simulation. Over 1,000 different combinations of evaluation parameters were tested using historical data from 2019 to September 2025.
Thanks to artificial intelligence, we were able to simulate many different combinations and find the one that would have delivered the best performance in retrospect. The goal was to find the optimal thresholds for the price-to-earnings ratio and the equity ratio for technology companies.
Here are a few examples of the tested combinations:
- P/E ratio >40 and <25 and equity ratio >50 and <35
- P/E ratio >33 and <22 and equity ratio >45 and <30
- P/E ratio >30 and <20 and equity ratio >40 and <25
What exactly has changed?
The results were clear. The following key performance indicators for technology stocks will henceforth be evaluated using the following thresholds:
1. Price-to-earnings ratio and 5-year price-to-earnings ratio
- P/E ratio below 22: +1 point
- P/E ratio between 22 and 33: 0 points
- P/E ratio above 33 or less than or equal to 0: -1 point
2. Equity ratio
- Equity ratio above 45: +1 point
- Equity ratio between 30 and 45: 0 points
- Equity ratio below 30: -1 point
3. Price-to-book ratio (P/B ratio)
It is no longer evaluated because it is not meaningful for technology companies.
Conclusion: The new thresholds allow technology stocks to be valued more realistically.
The result: noticeably better performance
The new valuation method significantly improves trading performance over the period January 2019 to September 2025 and across all approximately 1,200 stocks. When evaluating all stocks, the average performance per buy and sell transaction increased from 11.03 to 13.88 percent. This represents an increase of 25.8%. The average holding period lengthened slightly from 337 days to 381 days.
Old valuation method (All shares)
- 969 trades (buy and sell transactions)
- Average performance per trade: 11.03 % (excluding dividends)
- Average holding period: 337 days
- Average annual performance: 11.94 % (excluding dividends)
New valuation method (all stocks)
- 1,049 trades (buy and sell transactions)
- Average performance per trade: 13.88 % (excluding dividend)
- Average holding period: 381 days
- Average annual performance: 13.28 % (excluding dividends)
Results for technology stocks
The effect is particularly impressive when looking only at technology stocks.
- Old rating: Average performance 20.03 % per trade
- New rating: Average performance 28.32 % per trade
This corresponds to an increase in performance per buy and sell transaction of +41.4 percent in this sector.
TransparentShare boosts performance: Top 10 technology stocks
A particularly interesting insight emerges when comparing the tech stocks that would have achieved the highest performance in the simulation between January 2019 and September 2025. The new valuation method reveals significant changes in the rankings and performance.
While NVIDIA, General Electric and MicroStrategy perform particularly well with the new logic, it is becoming clear that the adjusted thresholds for technology stocks lead to more realistic and profitable results.
A direct comparison reveals that the average performance of the top stocks would have been significantly higher with the new valuation method. This is further evidence that the analysis now reflects the dynamics of modern markets even more accurately.
Comparison with the most important stock indices
A comparison with the performance of major stock indices demonstrates the strength of the new valuation method. For the period from January 2019 to September 2025, the average annual performance of the TransparentShare simulation was compared to the price indices of the MSCI World, S&P 500, DAX, and Euro Stoxx 50.
Since the TransparentShare simulation does not take dividends into account, the price index was also used for the indices, i.e., the pure price development without dividend payouts.
The result: With an average annual performance of 13.28%, TransparentShare, using its new valuation logic, significantly outperforms the benchmark indices MSCI World, DAX, and Euro Stoxx 50. This demonstrates above-average performance during this period. The return is slightly behind the S&P 500.
If only the stocks of the S&P 500 Index were considered, TransparentShare would have achieved an average annual performance of 14.74 % during this period.
TransparentShare improves performance – what that means for you
Retrospectively, TransparentShare's new methodology improves performance – a significant improvement for investors.
The new rating logic has been live for all users since November 5, 2025. The improved analysis is already fully integrated into the app.
Your advantages at a glance:
✅ More precise valuations through industry-specific key figures for technology stocks
✅ Better decision-making basis for purchases and sales
✅ Potentially higher performance through optimized evaluation method
In short: This update makes TransparentShare even more precise, even more realistic and even more valuable for your investment decisions.
Transparent methodology – measurable results
This development demonstrates the powerful impact of data-driven optimization.
The combination of experience, clear logic and artificial intelligence creates a rating system that reacts even more realistically to market changes.
Our philosophy remains unchanged: We make the stock market understandable, objective and transparent.
You always understand why a stock is recommended or not recommended, without any complicated technical jargon.
Try it now and benefit!
Open your TransparentShare app, check out the new ratings and discover which tech stocks are shining brighter now.
Not a user yet?
Then download TransparentShare now for free and test the new rating logic yourself.
Try TransparentShare for free for 14 days
⚠️ Important:
To benefit from the new rating method, you need to install the latest app version. The new rating logic and optimized thresholds are only active in the latest version. If you use TransparentShare via a browser, you don't need to do anything; the new rating method is already active there.
Start TransparentShare in your browser now
Update the app now:
Download the latest version directly from the Apple App Store or the Google Play Store:
