GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » PowerUp Acquisition Corp (NAS:PWUP) » Definitions » Predictability Rank

PowerUp Acquisition (PowerUp Acquisition) Predictability Rank


View and export this data going back to 2022. Start your Free Trial

What is PowerUp Acquisition Predictability Rank?

Not Rated

Warren Buffett said many times that the companies he likes are:

1. Simple businesses that he understands
2. that have predictable and proven earnings and
3. with economic moat
4. those can be bought at a reasonable price.

It is hard to quantify "simple businesses that he (Buffett) understands", so we will focus on the other three characteristics instead. In GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank, we will show that the businesses that have predictable and proven earnings are usually also simple businesses that an average person could understand.

GuruFocus conducted a back test study of Warren Buffett's strategy of "buying good companies at fair prices" for the years from 1998-2008.

PowerUp Acquisition Predictability Rank Calculation

In our database there are 2403 stocks that have been traded from Jan. 2, 1998 to Aug. 31, 2008. We have the complete 10-year financial data and trading prices of these companies for this period. We rank the predictability of these companies based on the consistency of their revenue per share and EBITDA (earning before interest, tax, depreciation and amortization) per share over the past ten fiscal years, and study the correlation between the stock performances and the predictability of the business.

Our study may be subject to these biases and assumptions:

Dividend yields are not counted for investment returns
Effects of price changes due to spin-offs may not be fully adjusted
Study is subjected to survivorship bias due to de-listing, bankruptcy, LBO, M&A, etc.

The correlation between business predictability and investment returns of a company is showed below.

Correlation Between Business Predictability and Investment Returns

PredictablesNon-PredictableAll stocks
Total Number of stocks57018332403
Total Lost Money61830891
Total Lost More Than 50%18412430
Total Lost More Than 90%48690
Average Gain260.6%100.0%138.1%
Median Gain150.0%13.0%39.0%
Maximum Gain2852.0%11483.0%11483.0%
Maximum Loss-100.0%-100.0%-100.0%
Annualized Average Gain12.7%6.7%8.4%
Annualized Median Gain8.9%1.1%3.1%


















For the 570 predictable companies, we have seen strong correlation between the predictability of businesses and the stock performances over the past 10 years, regardless of the valuation of business at 1998. Accordingly, we have ranked the business predictability from 5-star to 1-star, as shown in this table.

Predictability Rank5-Star4.5-Star4-Star3.5-Star3-Star2.5-Star2-Star1-Star (non-predictable)Average among all
% Out of All 2403 Stocks 3.3% 2.9% 3.7% 3.3% 3.3% 3.7% 3.3% 76.3% 100%
% that are in Loss (10y) 3% 10% 8% 9% 11% 18% 16% 45% 37%
Average Gain (10y) 364.6% 330.9% 278.0% 235.1% 243.5% 227.8% 154.8% 100.0% 138.1%
Median Gain (10y) 238.5% 193.5% 171.0% 159.0% 132.5% 113.5% 87.0% 13.0% 39.0%
Maximum Gainer 2228.0% 2547.0% 2452.0% 2852.0% 2432.0% 1892.0% 1807.0% 11483.0% 11483.0%
Maximum Loser -82.0% -53.0% -67.0% -100.0% -83.0% -100.0% -78.0% -100.0% -100.0%
Annualized Average Gain 15.4% 14.6% 13.2% 12.0% 12.2% 11.7% 9.1% 6.7% 8.4%
Annualized Median Gain 12.1% 10.6% 9.8% 9.3% 8.2% 7.3% 6.0% 1.1% 3.1%
















For detailed information about each predictability rank, please go to GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank

Also read:

Part II: What worked in the market from 1998-2008? Part II: Role of Valuations
Part III: Intrinsic Value, Discounted Cash Flow and Margin of Safety

PowerUp Acquisition Predictability Rank Related Terms

Thank you for viewing the detailed overview of PowerUp Acquisition's Predictability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

PowerUp Acquisition (PowerUp Acquisition) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » PowerUp Acquisition Corp (NAS:PWUP) » Definitions » Predictability Rank
Comparable Companies
HWEL BLUA CBRG NNAG CHAA TGAA DPCS EGGF PORT CITE PBAJ SVMB SCRM CVII AAC GHIX ALCC AACT DWAC SAGA
Traded in Other Exchanges
N/A
Address
188 Grand Street, Unit No.195, New York, NY, USA, 10013
Website
https://www.powerupacq.com/
PowerUp Acquisition Corp is a blank check company. It is formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.
Executives
Michael L Peterson director 17 CANARY COURT, DANVILLE CA 94526
Surendra K Ajjarapu director, 10 percent owner, officer: Chief Executive Officer 8604 BUTTON BUSH CT, TAMPA FL 33647
Howard A. Doss officer: Chief Financial Officer 17537 DARBY LANE, LUTZ FL 90067
Donald G. Fell director 17537 DARBY LANE, LUTZ FL 33558
Avinash R Wadhwani director 3 YARD COURT, FLEMINGTON NJ 08822
Mayur Mansukhlal Doshi director 147 MCKINLEY AVENUE, ALBERTSON NY 11507
Srirama Associates, Llc 10 percent owner 515 MADISON AVE., SUITE 880, NEW YORK NY 10022
Kyle Joseph Campbell director 104 MOHANAN DRIVE, FORT WALTON BEACH FL 32547
Bruce L. Hack director 6060 CENTER DRIVE, 5TH FLOOR, LOS ANGELES CA 90045
Powerup Sponsor Llc 10 percent owner 200 BROADWAY, FLOOR 3, NEW YORK NY 10038
Julie Uhrman director 199 WATER STREET, NEW YORK NY 10038
Jack Tretton director, officer: Chief Executive Officer 199 WATER STREET, NEW YORK NY 10038
Peter Blacklow director 199 WATER STREET, NEW YORK NY 10038
Gabriel Schillinger officer: President 199 WATER STREET, NEW YORK NY 10038
Michael J Olson officer: Chief Financial Officer 199 WATER STREET, NEW YORK NY 10038