Learn about the
TC Quantamental Rating®

Tutorial
3 min read

TC Quantamental Rating is a proprietary analytic developed by Trading Central which analyses a company’s financial attractiveness through a combination of quantitative and fundamental factors. The analytic uses a consistent framework to rate over 50,000 stocks worldwide on a scale of one to ten, with one representing the most bearish and ten, the most bullish. 

TC Quantamental Rating analytic on laptop screen

Interpret a wealth of data

The merit of fundamental analysis on equity valuation has a long history and is widely used by investors of all skill-level. Using a broad range of technical and fundamental indicators, the TC Quantamental Rating delivers a concise, high-level view of how a stock is performing.

Understand the rating!

The Quantamental Rating provides a weighted average of five factor groups (Value, Growth, Momentum, Income & Quality). Each is provided a score of 1 to 10, with 1 being the most bearish to 10 being the most bullish.

The weighted average of the 5 factor groups makes up the TC Quantamental Rating! 

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The five factor groups & their weight:

Value (25%)

of the company's shares

Growth (25%)

perspective of the company

Momentum (25%)

of short and long term price movements

Income (12.5%)

from dividends and their sustainability

Quality (12.5%)

and financial strength in terms of profitability, robustness of balance sheet & nature of earnings.

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What makes up these 5 factor groups? 

There are 20 individual factors which fuel these five factor group scores. Our team of data scientists and financial analysts worked hard to build a consistent evaluation framework that crunches these different financial metrics to meet the needs of various investment styles.

Value

BRatio, PCFRatio*, EarningsYield, EV/EBITDA

Growth

P/E Change, Earnings Growth, Revenue Growth

Momentum

3-Month Price momentum (short-term), 12-Month Price momentum (long-term)

Income

Dividend yield, DPS Growth, Regression Growth of Dividends 5 Years, Payout ratio

Quality

ROIC, Change in ROIC*, ROE, Change in ROE, Change in shares outstanding, Change in total Debt Equity Ratio*, Operation Margin

We’ve performed in-depth backtesting analysis across more than 4,000 US stocks over a period of 15 years to verify the validity and value-add of the TC Quantamental Rating! 

We hope you now understand how beneficial it is to have the Trading Central research team on your side and how simple it is to harness their insights! Take advantage of Analyst Views today to plan your trades with expert technical analysis!

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