It’s a big task. I suggest using the screener , doing it step by step, and using ShowVar() to check values. In fact a nice tutorial could come out of this.
When you run and change the report to ‘Screen Variables’ it you will see the values
IBM @RS=-2.44
MSFT @RS=-1.93
RS is just penalizing a stock for being small using a ratio of the stock’s market cap divided by total market cap. Since IBM is smaller than MSFT it gets a bigger penalty.
Shaun, the custom formula you created surpasses the 255 character limit for custom formulas when trying to create a ranking system. Does anyone have any ideas for a workaround?
Does anyone use this formula? It’s flawed as written as it gives an N/A to any company with a 26-week relative price change of less than zero. I tried fixing it and the formula gave WLB a 0.00, in other words no chance of bankruptcy at all, which is absurd since they’re a company in deep distress and just announced that they’re thinking about declaring chapter 11, while it gave very high numbers to most of the stocks I invest in. So maybe my fix–to substitute
WLB’s AltmanZOrig is -0.70. But the problem with the Z-score is it gives negative numbers to almost 400 stocks in my universe, which is way too many. Any suggestions?