The RQR (Robertson Quality Rating) is Mark Robertson's metric for reducing the concept of a company's quality to a single number. RQR values are available at Mark's ManifestInvesting.com site (subscription required). Most people reading this will be familar with BetterInvesting's (BI) method of gauging a company's quality. This involves the use of BI's flagship form, the Stock Selection Guide (SSG), to look for companies with a history of consistent growth for sales, pre-tax profit, and earnings per share. Estimates of future performance of the company are heavily influenced by this historical performance. So much so that Mark has commented it is similar to driving a car forward while only looking in the rearview mirror. The difference between quality on the SSG and RQR is that RQR is more forward looking. It has solid rootings in the company's history with its Financial Strength and EPS Predictability. It shows its true differences from the use of analyst projections for sales growth and profit margins relative to a S&P subindustry peer group. References Quality: A Measure of Excellence ICL Wager spreadsheet. Look at the ManifestSummary tab for details of how Mark Robertson calculates the Quality Rating at ManifestInvesting.com. Jim Thomas' Example Spreadsheets for RQR and RPAR. Look in the "QualityRating" folder where you'll find example spreadsheets (.xls files) for several different industries. Comment on this Page Last Modified 2006-10-27 |
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