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Plain-English explainers on quant investing, valuation, and quality factors.
What Is ROIC? Return on Invested Capital, Explained
Return on invested capital measures how efficiently a business turns capital into profit. The formula, how to interpret it, and why it's one of the closest single-number proxies for business quality.
·8 min readSector-Relative Valuation: Why You Should Compare P/E to the Sector, Not the Market
A single market-wide P/E cutoff misleads because sectors trade at structurally different multiples. Here's how sector-relative valuation fixes that, with a worked example and its limits.
·8 min readWhy Most Stock Screener Backtests Mislead You
Survivorship bias, look-ahead bias, and overfitting inflate almost every public stock-screener backtest. Here's how each one works, how point-in-time data fixes it, and a checklist for reading any backtest honestly.
·8 min readThe Piotroski F-Score: A 9-Point Quality Checklist, Explained
The Piotroski F-Score grades a company on 9 binary tests of profitability, leverage, and efficiency. Here's the full checklist, how to score it, and where it falls short.
·8 min read