GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Value Line Inc (NAS:VALU) » Definitions » Mohanram G-Score

Value Line (Value Line) Mohanram G-Score : 5 (As of Jan. 2024)


View and export this data going back to 1983. Start your Free Trial

What is Value Line Mohanram G-Score?

Mohanram G-Score is a financial indicator developed by professor Partha Mohanram to help investors find the best investment opportunities in the growth stocks. Companies have higher G-score tends to generate higher return. According to his study, the best growth stocks that have a G-Score greater than 6 tend to beat the market, while those with a G-Score lower than 1 tend to have negative absolute returns.

Thus, the zones of discrimination were as such:

Good or high score = 6, 7, 8
Bad or low score = 0, 1

Value Line has an G-score of 5.

The historical rank and industry rank for Value Line's Mohanram G-Score or its related term are showing as below:

VALU' s Mohanram G-Score Range Over the Past 10 Years
Min: 3   Med: 5   Max: 6
Current: 5

During the past 13 years, the highest Piotroski G-score of Value Line was 6. The lowest was 3. And the median was 5.


Value Line Mohanram G-Score Historical Data

The historical data trend for Value Line's Mohanram G-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Value Line Mohanram G-Score Chart

Value Line Annual Data
Trend Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23
Mohanram G-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.00 5.00 5.00 5.00 5.00

Value Line Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Mohanram G-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 5.00 5.00 4.00 5.00

Competitive Comparison of Value Line's Mohanram G-Score

For the Financial Data & Stock Exchanges subindustry, Value Line's Mohanram G-Score, along with its competitors' market caps and Mohanram G-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Value Line's Mohanram G-Score Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Value Line's Mohanram G-Score distribution charts can be found below:

* The bar in red indicates where Value Line's Mohanram G-Score falls into.



Value Line Mohanram G-Score Calculation

The calculation of the Mohanram G-score consists of eight criteria. Assign one point for each criterion met, then add up all the points to get the G-Score.

Profitability

Question 1. Return on Assets (ROA)

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. It measures how well a company uses its asset to generate earnings.

Score 1 if ROA > ROA Industry Median, 0 otherwise.

Question 2. Cash ROA

Cash ROA equals to Cash Flow from Operations divided by average Total Assets. It measures how well a company uses its asset to generate cash.

Score 1 if Cash ROA > Cash ROA Industry Median, 0 otherwise.

Question 3. CFO and Net Income

Score 1 if CFO > Net Income, 0 otherwise.

Earnings Predictability

Question 4. Earnings Variability

Earnings Variability is measured as the variance of a firm's ROA in the past five years.

Score 1 if Earnings Variability < Earnings Variability Industry Median, 0 otherwise.

Question 5. Sales Growth Variability

Sales Growth Variability is measured as the 5-year variance in sales growth.

Score 1 if Sales Growth Variability < Sales Growth Variability Industry Median, 0 otherwise.

Accounting Conservatism

Question 6. Research & Development Intensity

Research & Development Intensity is calcualted by Research & Development divided by the beginning Total Assets.

Score 1 if Research & Development Intensity > Research & Development Intensity Industry Median, 0 otherwise.

Question 7. CAPEX Intensity

CAPEX Intensity is calcualted by Capital Expenditure divided by the beginning Total Assets.

Score 1 if CAPEX Intensity > CAPEX Intensity Industry Median, 0 otherwise.

Question 8. Advertising Expenditure Intensity

Advertising Expenditure Intensity is calcualted by Advertising Expenditure divided by the beginning Total Assets. Note that Advertising Expenditure is not reported as a seperate line item for many companies, thus Selling, General, & Admin. Expense is used in this calculation.

Score 1 if Advertising Expenditure Intensity > Advertising Expenditure Intensity Industry Median, 0 otherwise.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Note that all the Industry Median used for comparison in his original research, are substituted with Sector Median due to the limitation of data within certain countries.

Good or high score = 6, 7, 8
Bad or low score = 0, 1

Value Line has an G-score of 5.

Value Line  (NAS:VALU) Mohanram G-Score Explanation

Partha Mohanram is the John H. Watson Chair in Value Investing at Rotman and the Acting Vice-Dean of Research Strategy and Resources.

In 2000, he wrote a research paper called "Separating Winners from Losers Among Low Book-to-Market Stocks Using Financial Statement Analysis".

This paper tests whether a strategy based on financial statement analysis of low book-to-market (growth) stocks is successful in differentiating between winners and losers in terms of future stock performance. Based on the research, a strategy based on buying high G-score (6, 7 or 8) firms and shorting low G-score (0 or 1) firms consistently earns significant excess returns. Further, the results do not support a risk based explanation for the book-to-market effect as the strategy returns positive returns in all years, and firms that ex-ante appear less risky have better future returns.

To conclude, one can use a modified fundamental analysis strategy (G-score) to identify mispricing and earn substantial abnormal returns.


Value Line Mohanram G-Score Related Terms

Thank you for viewing the detailed overview of Value Line's Mohanram G-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Value Line (Value Line) Business Description

Traded in Other Exchanges
N/A
Address
551 Fifth Avenue, 3rd Floor, New York, NY, USA, 10176-0001
Value Line Inc is a U.S based company. It produces investment periodicals based on underlying research and making available copyright data, including ranking system and other information, to third parties under written agreements for use in third-party managed and marketed investment products and for other purposes. The company markets under well-known brands including Value Line, the Value Line logo, The Value Line Investment Survey, Smart Research, Smarter Investing and The Most Trusted Name in Investment Research. Its only operating segment being Publishing.
Executives
Glenn J. Muenzer director 357 HARVARD COURT, EAST MEADOW NY 11554
Alfred R Fiore director 1 ANGORA ROAD, WESTPORT CT 06880
Howard A Brecher director, officer: Acting Chairman and Acting CEO VALUE LINE 220 E 42ND ST, SUITE 600, NEW YORK NY 10017
Stephen Anastasio officer: Chief Financial Officer 220 E 42ND STREET, NEW YORK NY 10017
William Edward Reed director 12 KNORR STREET, NORWALK CT 06854
Mary Bernstein director 220 E 42ND STREET, NEW YORK NY 10017
Stephen P Davis director 57 EAST 95TH STREET, NEW YORK NY 10128
Thomas Sarkany director, officer: Secretary 220 EAST 42ND STREET, 6TH FLOOR, NEW YORK NY 10017
Robert M. Perkins, director 220 EAST 42ND STREET, 6TH FLOOR, NEW YORK CITY NY 10017
Ruth O. Legon, director 220 EAST 42ND STREET, 6TH FLOOR, NEW YORK CITY NY 10017
Arnold Bernhard & Co Inc 10 percent owner 220 EAST 42ND STREET 6TH FLOOR, NEW YORK NY 10017
Janet Eakman director 220 E 42ND STREET, NEW YORK NY 10017
Mitchell Eric Appel officer: CFO VALUE LINE INC, 220 EAST 42ND STREET 6TH FLOOR, NEW YORK NY 10017
Edward J Shanahan director 220 EAST 42 STREET, NEW YORK NY 10017
Marianne B Asher director