We can filter companies using various scores such as Piotroski F-score, Altman Z-score, Beneish M-score and Montier C-score. In this post, we will look into the scores to identify certain companies.
Piotroski F-score
F-score was developed by Joseph Piotroski. It is used to spot turnaround companies fast and also to identify the healthiest company among a basket of stocks. It involves nine variables from a company’s financial statements. In a research paper by Piotroski entitled “Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers“, it was shown that by investing in the top performers over a 20-year test period from 1976 through 1996 that “the mean return earned by a high book-to-market investor can be increased by at least 7.5% annually”. On top of that, he ...
We can filter companies using various scores such as Piotroski F-score, Altman Z-score, Beneish M-score and Montier C-score. In this post, we will look into the scores to identify certain companies.
Piotroski F-score
F-score was developed by Joseph Piotroski. It is used to spot turnaround companies fast and also to identify the healthiest company among a basket of stocks. It involves nine variables from a company’s financial statements. In a research paper by Piotroski entitled “Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers“, it was shown that by investing in the top performers over a 20-year test period from 1976 through 1996 that “the mean return earned by a high book-to-market investor can be increased by at least 7.5% annually”. On top of that, he ...
