Research house SQM Research has launched Shares Professional to help advisers rank ASX 200 companies.
The ratings were compiled using a rigorous quantitative research process that was qualitatively peer-reviewed based on the firm’s five-star ratings model.
The median rating for all ASX-listed companies was 2.2 stars and its top five companies were Stanmore Resources, WiseTech Global, AUB Group, Perseus Mining and Cochlear which all received 3.3 or higher.
Each company was sub-rated under Quality, Valuation and Momentum and the overall rating was an equal weighting of these three factors.
Each factor had its own methodology employed using industry-recognised ratios. For example, the valuation factor included discounted cashflows, discounted dividends, price to earnings, price to NTA/NAV and valuations also considered consensus price targets and forward earnings.
Overseeing the ratings was analyst Otto Rieth in conjunction with SQM managing director, Louis Christopher. Rieth was formerly senior portfolio manager and head of strategic research at van Eyk Group.
Christopher said: “The introduction of ratings on Australian-listed companies now completes our investment market research offering. As such, SQM Research is a full-service research organisation providing ratings, data and insights into direct equities, multi-strategy SMA models, single strategy funds on all asset classes and of course, real estate”.
Shares Professional cost $49 per month-by-month subscription or $550 for a 12-month service.
