Obermatt Rankings
► UK Switzerland Germany
► Luxury Pharmaceuticals
► Swiss Banks
► Contact for detail info
Newsletter
Statements
How do you combine multiple investment criteria in stock analysis and screening?
How Obermatt investment criteria work
All Obermatt investment criteria have values between 0% and 100% (more about the Obermatt indexing method). A value of 0% means that the investment criterion of this stock is less than all other peers. A value of 100% means that the stock has outperformed all peers on this criterion. A value of 50% means that the stock is better as 50% of all other peers. Statisticians call this a percentile rank. A percentile rank of two criteria is directly comparable, because the values are on the same scale. In principle, difficulty in outperforming relative to peers is the same regardless of the metric in question.
How Obermatt combines your investment criteria
Obermatt combines your investment criteria by calculating an average of your selected criteria. This is possible because all criteria are measured on the same scale of 0% to 100%. Obermatt calculates the average of all your selected criteria and ranks the result by the average value which is called the Combined Rank. For example: If you want to combine Profit Growth and Price/Earning Ratio to identify those shares with both the best profit growth and the best Price/Earning Ratio, we will calculate the average rank for both criteria Profit Growth and Price/Earning Ratio separately and sort the result table by the average of the two values.
How you can weight criteria
If you want to over-weight one or more investment criteria, you can select them multiple times in the results table. For example: if you select Profit Growth twice and Price/Earning Ratio once, then Obermatt calculates the average of 2x Profit Growth and 2x Price/Earning Ratio. The weighting in this case is 2:1.


