Watchlist
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How tile colors are chosen
Buy zone. At or below your support line or buy price, at or below book value, or cheap on the scale for its kind of company, with no red flags. These tiles go wide.
Take a look. Within 10% above your support line or buy price, or on the low side of its scale.
Check first. Would be a buy or a look, but book value is shrinking or you marked fundamentals as broken. Cheap for a reason is the classic value trap.
Wait. An ordinary P/B for its kind, or more than 10% above your buy price.
Pricey. High even for its kind, or at your resistance line.
Needs data. No price, or book value is negative so P/B can't be computed. Add a buy price and it ranks against that instead.
One scale, shifted by kind of company. P/B compares price with what the balance sheet holds, so what counts as cheap depends on how much of the business is on the books.
Support and resistance lines. Tap a tile to open its chart and draw them. A support line replaces the fixed buy price: it rises or falls with the trend you drew, so the buy zone ages with the business. Price at or below the line is a buy-zone signal, within 10% above it is a look. Price at or above your resistance line marks the tile Pricey, whatever the P/B says. Lines are straight on the log scale, so the slope reads as a yearly growth rate.
Dividends. Enter the yearly dividend per share and the tile shows the yield, recomputed from whatever price you enter. Yield never changes a tile's color: a payout the company can't sustain looks best right before it's cut.
Cash, returns and debt. The small line on each tile reads FCF 6.2% · ROIC 14% · 1.4× debt. FCF is free cash flow yield: a year of free cash flow divided by the company's market value, so it rises as the price falls. ROIC is return on invested capital: after-tax operating profit per dollar of debt and equity in the business. × debt is net debt (debt minus cash) divided by a year of EBITDA; "Net cash" means more cash than debt. These come from Yahoo once a day. Like book value trend, they never make a tile greener on their own, but a red flag turns a cheap tile to Check first: debt above 6× EBITDA for asset-heavy companies (3.5× for inventory, 3× for IP), negative free cash flow both for the past year and the last annual report (inventory and IP companies only, since asset-heavy ones often borrow to build), or an operating loss. Banks, insurers, mortgage REITs and funds report no operating earnings, so they're left out for these.
Price below book value is treated as cheap for every kind. Book value trend compares the latest point with one about a year earlier; when your history reaches back further and disagrees, the tile says so. The numbers live in PROFILES at the top of the script.