What Problem Can Stock Engine Solve? Why Did I Commission It?
I wanted to build a stock analysis tool – not just another reporting tool. Read about the business model of the Stock Engine and how a professional-grade analysis tool is priced so competitively.
This gap existed in the market when I started, and I believe it still exists even today.
I already knew how to analyze stocks because I used to do it myself in Excel. In 2015, I offered my readers a version of my Excel sheet called the Stock Analysis Worksheet (SAW) as a product. It received a decent response.
Later, along with my co-developer, we enhanced the Excel sheet by adding the ability to fetch financial data automatically with the click of a button using macros.
But macro-based Excel has its own limitations.
Users for whom the Excel version worked were extremely happy with it, but many also faced macro-related issues. Moreover, protecting the algorithm inside Excel became a major challenge. Many of the formulas and logic were embedded directly into the sheets, making complete security difficult.
That is when we decided to migrate the entire system into a web application.
For me, stock analysis is not about generating impressive charts or simply reporting financial ratios. A true stock analysis tool must answer one important question:
“Is this stock good for investing or not?”
The algorithm I built has this interpretation capability.
It can analyze stocks across six important parameters:
- Price Valuation (Intrinsic Value)
- Growth
- Profitability
- Financial Health
- Moat
- Quality of Management
Based on this analysis, the system generates an Overall Score on a scale of 0 to 100, indicating how suitable a stock is for investment.
The same algorithm is also used to generate pre-built stock screeners using the GMR Score.
In addition, we built a custom stock screener that allows users to create their own personalized screeners based on the parameters they prefer.
The real moat of this product lies in its ability to perform “real” stock analysis and generate answers not only in quantifiable terms, but also in an easy-to-understand question-and-answer format.
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