X Axis is the VALUE MEASURE. Options include EV/EBIT, EV/EBITDA, EV/EBITDA 3-year average, EV/GP-SGA average over the past 2 years. Y Axis is the QUALITY MEASURE. Use drop down to select preferred quality measure. Return on Capital(Greenblatt), ROIC average over past 3 years, ROC, ROA average over the past 3 years, ROA for the TTM.
The upper left quadrant are good companies at cheap prices, the bottom left is cheap companies with the lower quality measure. Note by updating the right-hand filters the population size of companies to analyze via the scatter plot will adjust. Filter options include Industries (all industries selected by default), financial strength, market cap(preset for 10M to 200M), Sloan ratio, stock return over TTM, one-year revenue growth and the X or Y axis measure.
The shape type is determined by its industry. The color represents the 52-week return of the stock(see the color gauge on the bottom right-hand corner of filters).
Article by Shadow Stock