Trend & Valuation Methodology Enhanced

TVME Protocol

A systematic framework for ranked stock universes, individual equity research, and model portfolio construction.

Factsheet Analytics Workbench Sandbox Output Member Area

Marketroller Club Research Framework

Is this business worth owning, and is now the right time to own it?

TVME separates equity analysis into two questions: business quality and price discipline. It ranks companies across proprietary pillars, assigns comparable 0-10 scores, and uses the results for research reports, universe screeners, and model portfolio recipes.

The disclosed methodology explains the structure and analytical intent. Calibration thresholds, weights, and exact scoring formulas remain proprietary.

TVME score scale 0-10

Sell Hold Accumulate Buy Strong Buy

Framework at a glance

Universe to portfolio construction

01 Select universe

Established index universe or curated Marketroller research universe.

02 Score stocks

Rank every company by TVME pillars on a comparable 0-10 scale.

03 Combine layers

Search for an alpha recipe using one, two, or three pillar layers.

04 Select portfolio

Publish target holdings, weights, backtest evidence, and update cadence.

Layered Selection Engine

From ranked universe to published model portfolio

Elite research workflow

Ranked universe

Score matrix

Sector context

Price history

L1 Broad research gate

Initial ranking screen narrows the universe to names that clear the first TVME lens.

L2 Confirmation gate

A second pillar lens checks whether the remaining names are supported by another research dimension.

L3 Final construction gate

The final layer selects the target basket used for the published portfolio package.

Target basket 10-50 stocks

Equal or model-defined weights, benchmark context, rebalance cadence, and current holdings.

Backtest Factsheet Workbench Output

TVME scoring pillars

Four headline pillars, one portfolio filter, two valuation diagnostics

P1 · Scored

Business Edge Score

Audits whether management is creating economic value with the capital employed in the business. The pillar studies capital efficiency against a market hurdle, free-cash-flow support for reinvestment, and gross-margin resilience over recent reporting periods.

A high reading points to a business that earns more than its cost of capital and funds growth without excessive strain. A low reading flags weak capital productivity, margin pressure, or growth that consumes more cash than it creates.

P3 · Scored

Quality Score

Grades the durability of the earnings machine. The collector checks return quality versus industry peers, balance-sheet pressure relative to operating cash flow, and whether reported profits are supported by real cash generation.

This pillar is intended to separate durable compounders from companies where earnings are fragile, highly levered, or poorly converted into cash. It is a quality gate, not a price signal.

P4 · Scored

CGAPE Valuation

Tests whether the current price is defensible against a forward earnings path. The calculation uses point-in-time earnings data, a controlled growth assumption, macro cost-of-capital inputs, and a sector-aware valuation reference.

The objective is not to chase optimistic forecasts. It is to ask whether the market price leaves a reasonable margin versus a conservative forward view of the business.

P9 · Scored

Earnings Momentum

Measures whether the company’s operating trajectory is improving at the margin. The pillar combines earnings-growth direction, margin expansion, and operating-cash-flow velocity into a compact trend signal.

A stronger score suggests the business fundamentals are accelerating. A weaker score warns that the quality or valuation case may not yet be confirmed by recent operating momentum.

P5 · Diagnostic

GAPER

Frames the forward valuation multiple against the company’s expected growth rate and an industry growth baseline. It is used as a cross-check on whether growth is expensive or reasonably priced.

GAPER is disclosed as a diagnostic lens. It can support or challenge the CGAPE message, but it does not drive the headline TVME average by itself.

P2 · Filter

Price Momentum

Acts as a portfolio construction filter. It compares stock trend health with relevant market, sector, and industry references and looks for relative resilience or deterioration in price action.

P2 is deliberately kept outside the headline fundamental average. It is used to decide whether a fundamentally attractive name is also supported by the tape at the portfolio rebalance date.

P10 · Supplementary

Owner Cash Flow Check

Provides an additional valuation sanity check based on free-cash-flow economics and share count. It helps identify cases where accounting earnings and cash-owner value tell different stories.

This is a supporting valuation tool, not a disclosed formula. It is useful for internal comparison, factsheet context, and research discipline when valuation signals disagree.

From scores to stance

Research output

The headline TVME Score is built from the fundamental and valuation pillars that are intended to rank the business case itself. Portfolio filters and diagnostics are shown separately so the reader can distinguish business quality, price discipline, trend confirmation, and valuation cross-checks.

Supplementary output can include intrinsic-value context, advised entry-zone discipline, 12-month target context, peer comparison, risk matrix, and management commentary. Exact thresholds, weights, and calibration parameters are proprietary.

Governance

Consistency and versioning

Each report and portfolio package carries a methodology version stamp. Scores are designed to be defensible, reproducible, and calibrated to the same standard across sectors and geographies.

Marketroller Club research is for informational purposes only and does not constitute investment advice. Members decide how to use any research output in their own account.