Best way to read an Y Chart

0
0

Hello, I’m a new member I’m learning a lot thank you for all the great content, do you have any references or video explaining what is the best way to read a Y chart on stock, like what are the most important metrics to look for, how to correctly understand what they mean, etc.

Thank you !

Marked as spam
Asked on April 22, 2023 1:17 pm
0 views
0
Private answer

Hey Philippe,

THere aren't any specific references or videos explaining the Ycharts reports. The reports themselves do contain explainers of all their components, but if you have any specific questions - I'd just ask them here.

In general though there are three sections:

Performance: This takes a look at their performance over time. Generally, you'll want to see positive trends in the areas contained within. For example, in the "Revenue & Earnings Growth" section, if there is a downtrend, that isn't great.
Valuation: This will compare valuations against its own historical averages and the industry. So this should give you an idea if the stock is undervalued or overvalued. Worth noting, that if there is a big deviation from their own average or the industry - there may be a reason for it, so you may want to do additional due diligence. Generally speaking the lower the ratios in this section, the cheaper the stock.
Competitors: This takes a look at its performance, financial situation vs the competition. Pretty straightforward here - you'll want to look and see if the company is performance better than peers (or not). There is also a section on valuation, so you can compare its value vs the main competitors.
Financials: This section shows the income statement, balance sheet, and cash flow statements on a Q over Q basis. Handy when looking for trends and historical performance. Once again, you are looking for sequential improvements. Note that the pandemic period had many one term impacts so the results don't necessarily make for good comparisons.
Yratings: at the end of the document, it explains the Yratings system in more detail and is a proprietary score for Ycharts using a red, yellow, green system. Green being good and red being bad - all based on data.

If you ask for a report and have any specific questions - feel free to ask.

Hope this helps.

Mat

Marked as spam
Posted by Mathieu Litalien
Answered on April 25, 2023 9:16 am