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I was looking at the OVERVIEW in TK6 and noticed that the Relative value does not match the SSG Relative or the Proj Relative Value. I checked the reports from the OVERVIEW and found that to be the case in the reports as well and the PEG RATIO in the reports does not match the SSG PEG Ratio. When I evulate a stock I buy it or put it in a Watch list to keep an eye on. Then if the Relative value and the Reward/Risk are favorable I will look at it to maybe buy. However when the Relative Value is not the same as the SSG it is hard to trust the OVERVIEW Relative numbers or the Reports. Is this something that can be corrected in future upgrades?
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Posted By David DeBruhl on 08/26/2014 8:33 AM
I was looking at the OVERVIEW in TK6 and noticed that the Relative value does not match the SSG Relative or the Proj Relative Value. I checked the reports from the OVERVIEW and found that to be the case in the reports as well and the PEG RATIO in the reports does not match the SSG PEG Ratio. When I evulate a stock I buy it or put it in a Watch list to keep an eye on. Then if the Relative value and the Reward/Risk are favorable I will look at it to maybe buy. However when the Relative Value is not the same as the SSG it is hard to trust the OVERVIEW Relative numbers or the Reports. Is this something that can be corrected in future upgrades?
The program is working as designed. Relative Value on the Portfolio Review Report is determined by using your projected high and low P/E Ratios to calculate the Average P/E Ratio, making it in effect a Projected Average P/E Ratio. On the SSG, Average P/E Ratio is calculated by using your adjusted five-year historical P/E Ratios.
The rationale for this is that the Portfolio Review Report is forward-looking, intended to help you determine the valuation of stocks that you already own. The SSG is looking at the stock from the perspective of how it is valued according to its recent history.
Doug
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Thank you for you insight on the problem. For me it is hard to trust a report that is not the same as the SSG. Also could you comment on the PEG Ratio in the SSG and the Reports. It looks like it is off two decimal points. I was looking as Am Trust Financial and the SSG says PEG Ratio 0.6 and the Reports PEG Ratio says 60.9. I am thinking that it is a decimal issue. Can this be corrected in a upgrade?
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Posted By David DeBruhl on 08/27/2014 2:15 PM
Thank you for you insight on the problem. For me it is hard to trust a report that is not the same as the SSG. Also could you comment on the PEG Ratio in the SSG and the Reports. It looks like it is off two decimal points. I was looking as Am Trust Financial and the SSG says PEG Ratio 0.6 and the Reports PEG Ratio says 60.9. I am thinking that it is a decimal issue. Can this be corrected in a upgrade?
The PEG Ratio on the SSG is a decimal and the PEG Ratio on the reports are percentages. Just as 100%=1.00, 60.9%=0.6 (rounded from 0.609). It's the same value, just expressed in different numerical format. Many ratios can be expressed as percentages or values, but we have on the list to standardize the PEG ratio displays in a future update.
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Good to here about the standardization of the PEG Ratio on both Reports and SSG. Speaking of standardization in the reports. Some reports show EPS, Sales, Pre-Tax Profit and some reports show Sales, Pre-tax Profit, and then EPS. It is a little confusing when you are swithching between reports. I would prefer them to look like the Annual Reports Sales, Pre-Tax, and EPS. Can the reports be Standardized? Also can a column be add to reflect the Current Relative Value and the Current Project RV from the SSG along with the Forward Looking Proj. RV?
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I'm not opposed to standardizing the layout of the reports so that data conforms to the financial statement order, but many of those reports pre-date me and some even pre-date Toolkit, so it may be troublesome to change up the order on them. I'll see what we can do, though!
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Thank you for you help in trying to standardize the reports.
I was looking at the Toolkit 6 Defense reports and trying to understand it. The Columns on Sales say Forecast Growth, % Change Sales, Percent Difference. I was looking at Cognizant Technology and noticed that the Forecast Sales Growth was 20 and the % Change Sales was 16.5 and the Percent Diff was -17.7 this is for the quarterely date ending 6/14. I thought that was strange I would thing it would be a positive number not a negative number going from 16.5 to 20. So I set up a caluclator in a spreadsheet and found out that they are taking the 16.5 and dividing it by 20 minus 1 to get the negartive number -17.7%. I would think you would do it the other way around. If you divide 20 by 16.5 minus 1 you get a positive number 21.2%. I found this to be the case for the Pre-Tax Profit and the EPS Columns as well. I tried looking into the Manual but found it vague and did not give any explanation on why they calculate the % Diff that way. Do you know why they calculate the % Diff this way or where I can find more information on the Defense reports?
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Posted By David DeBruhl on 09/05/2014 10:09 AM
I was looking at the Toolkit 6 Defense reports and trying to understand it. The Columns on Sales say Forecast Growth, % Change Sales, Percent Difference. I was looking at Cognizant Technology and noticed that the Forecast Sales Growth was 20 and the % Change Sales was 16.5 and the Percent Diff was -17.7 this is for the quarterely date ending 6/14. I thought that was strange I would thing it would be a positive number not a negative number going from 16.5 to 20. So I set up a caluclator in a spreadsheet and found out that they are taking the 16.5 and dividing it by 20 minus 1 to get the negartive number -17.7%.
It may help to think of it this way. You projected sales growth at 20%, but in the latest quarter sales only grew 16.5%. This is 17.7% less than you projected, and that's what the program is telling you. In a case like this, Toolkit is suggesting that your projection may be too high, or that there is something that you may need to investigate in the recent results since it is below your expectations -- either way, your long-term expectations may be at risk since the company is not performing in the short-term up to your long-term projections.
Doug
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Thank you for your explaining that. I will print that out and put it in my Toolkit Manual for future use.
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In the latest Toolkit update I noticed that the reports have changed to reflect the Relative Value, Projected Relative Value and PEG Ratio. Thank you for making these changes. However on the Overview Screen it reads Relative Value when in fact it reflates the Projected Relative Value and in the Reports on the (Sort On Tab) there is only the Relative Value to sort my and not the Projected Relative Value. I also noticed in the SSG back section that the Projected Relative Value has two values and sometimes one has a red line through it and sometimes it does not.
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We'll take a look at the RV and Proj RV on the Overview Screen and Reports.
On the SSG back, if you remove some PE ratios in the past five years in Section 3 as outliers, TK6 will display the original-calculated RV with red strikeouts and then the RV as calculated without your outliers. For Proj RV, if your projected high and low PE ratios are not the same as the historical values, the same behavior will occur.
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Rank: Advanced Member
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Thanks for looking into the RV and Proj RV on the Overview Screen and Reports. Maybe we can get more consistency in the overview and reports screens.
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