In this blog, we will be focusing on the features of each variable in MQ Trader Fundamental Screener. If you would like to know more about MQ Trader Fundamental Screener, kindly read MQ Trader- Fundamental Screener.

Fundamental Indicators

1. Price Earnings Ratio (PE)

The price-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings. The value of this indicator can determine whether the stock is currently undervalued.

The calculation for PE ratio:

Market Value per Share / Earnings per Share

Anything with a P/E over 15 looks unattractive based on price. The only exception that we allow to our P/E rule is for growth stocks with consistent records of rising earnings. If a company's earnings are advancing faster than the market average, it can command a higher-than-average price/earnings ratio.

2. Earnings per share

Earnings per share (EPS) are the portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serve as an indicator of a company's profitability. EPS is calculated as:

EPS = (Net Income - Dividends on Preferred Stock) / Average Outstanding Shares

3. Dividend Yield

Dividend yield is a financial ratio that indicates how much a company pays out in dividends each year relative to its share price. It is represented in percentage which measures the return on investment for a stock.

Calculation of Dividend Yield:

4. Net Asset per Share (NAPS)

Net Asset per Share (NAPS) is known as the book value per share which is an expression for net asset value that represents the value per share of a mutual fund, exchange-traded fund (ETF) or a closed-end fund. If NAPS is higher than the share price, then the share will be considered as undervalued, as it means that the stock is traded at a cheaper price than its actual value. 

Calculation of NAPS:

NAVPS = Net Asset Value (NAV) / Number of Shares Outstanding

where NAV = Assets – Liabilities

5. Return in Equity (ROE)

Return on Equity (ROE) measures a company's profitability by revealing how much profit a company generates with the money shareholders have invested. A positive ROE means the shareholder's value have increased over time. The higher the return on equity, the more efficient the company's operations are making use of those funds.

Calculation of ROE:

Return on Equity = Net Income/Shareholder's Equity

Price

• Stocks with certain price range according to our affordability can be screened.
• Penny stocks can be filtered out

Stamp Duty Exempted (Mids)

Stamp duty on shares of mid and small cap companies is waived for three (3) years from 1 March 2018 to 28 February 2022. For stamp duty exemption in 2018, eligible mid and small cap companies are those with market capitalisation between RM200 million and RM2 billion as at 31 December 2017.

Intraday Short Selling (IDSS)

This variable provides a list of stocks which are available for IDSS. To know more about IDSS, please read What is intraday short selling?

Community Feedback

We encourage traders to try out and evaluate the MQ Trader system and provide us feedback on the features you like to see in the system. We have received many positive feedbacks so far, and we are currently compiling and reviewing them for possible inclusion into the next release of the system.

We would like to develop this system based on community feedback to cater for community needs. Thanks to all those who have provided valuable feedback to us. Keep those feedbacks coming in!

Disclaimer

This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.

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MQ Trader stock analysis system uses Artificial Intelligence (AI), various technical indicators and quantitative data to generate accurate trading signals without the interference of human's emotions and bias against any particular stock. It comprises trading strategies which are very popular among fund managers for analysing stocks. 

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