ThinkorSwim Indicators for Basic Fundamental Analysis

Itrader1618, I see what you mean.

The chart with Graham Number study gives a total TTM (Trailing Twelve Months (IE. the last 4 quarters of EPS) ) of EPS of $6.71.
oaFKMjL.jpg


I took a look at the TOS Fundamentals page for MSFT:
niXk8Mb.jpg

The quarterly EPS listed there, when added together, equals $6.19 (which is wrong).
1.51 + 1.40 + 1.46 + 1.82 = 6.19

However, the TD Ameritrade web site Fundamentals page for MSFT is:
WwHrFML.jpg

The EPS-TTM returned by the chart study and the TD Ameritrade site is $6.71. This is correct.
1.40 + 1.46 + 1.82 + 2.03 = 6.71

The 1st value skips the last MSFT EPS from Q1 of 2021 (of 2.03) but includes the EPS from Q1 of 2020 (of 1.51) - so it's off by one quarter.

The study seems to work but I now mistrust the TOS Analyze=>Fundamentals page.

Is that what you see?

Chuck
Yes Sir, I am just confused as before and dont know what to trust...
Although I would say I really do appreciate all that has been provided but I would even appreciate more if the fix is provided.

Always grateful of the community.

Regards,

Trader1618
 
I think the info for earnings on the chart and the info given on the TD Ameritrade web site can be trusted. I verified this by going to the Securities and Exchange Commission (SEC) EDGAR database comparing the EPS numbers for the MSFT and IBM official filings to what at the TD Ameritrade site. They match. Therefore, the Graham Number calculation and the scan can be trusted. (Unless I misunderstand about what you are saying is broken).

The only broken item that I see is the ThinkOrSwim platform Fundamentals tab. That data seems to be one quarter behind the rest of the SEC documents. Therefore, for the time being, I will not trust the ThinkOrSwim financial info on that tab. However, it looks like ThinkScript gets its info from the TD Ameritrade website and not the TOS financials tab.

So, the TOS financials tab has a bug but I am too busy to contact the ThinkOrSwim platform support team. Perhaps if you have time?

If there is something else wrong, perhaps in the scan or the Graham Number displayed by the chart study, could you elaborate?

Thank you,

Chuck
 
One thing I notice is that your market cap is way too large. The inputs should be expressed in millions of dollars. As I read it, your current input shows 1 billion, million dollars. Reduce that to 1,000 to get your billion $ market cap minimum. I don't know what your definition of "def bookvalue". Also the orange triangles in the columns mean that it is complex and may slow down your system to load the data.
 
@quijanoj44 When debugging anything (a study, scanner, watchlist), you want to test each of your filters one at a time. That way you narrow down where/what is causing your issue.
 
Prison Mike, are you still looking for input about how to get your script working? I was trying to do the same thing and ran across your posting. I finally was advised by someone at TD Ameritrade to post my questions in the TOS chat room => ThinkScript section. I think I now have a working Graham Number scan and also a chart style that lets me see all of a stock's fundamentals including calculated Graham Number. I would be glad to share what I've got with you if you still need it. (I spent most of a day trying to get things to work before I got good, obscure, magical advice from the TOS ThinkScript chat room). -- Chuck Rosselli
The Graham Number might have worked in Benjamin Graham's day when stocks traded at smaller PE ratios, Try it on amzn,tsla, and some of the other high priced stocks
 
Hi All,
I have been using the "Earnings Statistics" study from the first post from this thread by author "Paris" that shows the gap up/ gap down after the earnings report. However, I have noticed that when looking at this study on a 1 day 1 year chart, there is always gap up/gap down chart bubble displayed on the first day that is visible (1 year ago) that does not coincide with an actual earnings report (and presumably is the gap up/down from the prior day's close that is not visible on the chart). This gap up/down data is factored into the average stats labels at the top which skews the averages and does not make them accurate. See the attached image on a 1 year daily chart of FDX showing the farthest left (oldest date) bubble is not corresponding to an actual earnings event (I also confirmed that this bubble is not displaying the earnings gap from the prior report that is not shown on the screen). There are 4 earnings reports, but 5 bubbles shown and at the top you'll notice that there are 5 total gaps being factored into the averages.

Is there a way to edit this study to ensure that this bubble/data is not displayed and only measures the actual earnings gap data? Ive tried playing around with different daily time frames (1.5 years, 9 months, etc) but the bubble is still there. Thanks!!

41gV0sT.jpg
 
@ChuckRosselli, so which is the way to use this scan? The results it shows are stocks with strong uptrend since months ago. Would be nice to catch these runs sooner.
I specifically use the scan to find candidates to sell covered calls against. I'm looking to either buy shares or buy a LEAP. I want a stock with good fundamentals where its price is likely to stay flat or even rise a bit. So, the scan indicates good fundamentals. I then look to see if the candidate is above its 50 and 200 MAs but not "peaking". If it passes these tests, I buy either 100 shares of stock or one LEAP. Usually I buy a LEAP with a delta of .70 to .75. Also, I want the LEAP's expiration to be between November and February as times the market is more likely to be going up. Once I have the stock or the LEAP, I sell Covered Calls against it every month - usually at a delta of about .30. In the last month of expiration for the LEAP, I can hopefully harvest a profit from the last covered call I write against it plus any capital gains from the stock price having risen.
 
Gellidus,

Yes, I think Graham Number is Benjamin Graham's idea of the Fair Price of a share of stock.

Benjamin Graham actually defined 2 metrics help determine if a stock was a good value or not.

The first, was Graham Number (which this post thread has been discussing):

Graham number - fair value of stock
= SQRT( 22.5 x EPS x BVPS )
EPS - Earnings per Share (for last year)
BVPS - Book Value per Share (as of most recent quarter)

(If I am calculating EPS and BVPS from other numbers, I only use shares of common stock & not preferred stock).

The other:

Graham Intrinsic Value (also called "Benjamin Graham Formula") - stock's value including time growth
= (EPS x (8.5 + (2 x 5 yr growth rate)) x 4.40 / (20 yr AAA corporate bond rate)
EPS - Earnings per Share (common + preferred)
8.5 - Typical PE ratio for a non-growth company
4.4 - Yield of corporate AAA bonds in 1962 (when model introduced)
Current 20 year AAA corporate bond rate - Available at: https://fred.stlouisfed.org/series/HQMCB20YR

(I calculate Graham Intrinsic Value both without and with dividends. To calculate Graham Intrinsic Value "Total Return" (with dividends), I add the yearly dividend yield to the yearly predicted growth rate).

You can look up both "Graham Number" and "Benjamin Graham Formula" on Wikipedia which gives a good summary of both.

I hope this helps.

Chuck

Hello,

Do you happen to have the code for the Graham intrinsic value formula?
 
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