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CGVI - What are your opinions?

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brettc4

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Hi All,

On another post I saw a link to http://www.ascii-data.com/ which is very interesting. After downloading the spreadsheet I saw a column, 'CGVI' which I am not farmilar with. Thanks to Google I got to http://www.lainie.com.au/sharesguru/index.html where I could download a powerpoint on the subject.

Comparitive Growth and Value Indicator

In a nutshell:

CGVI% = ((EPS + DPS) / Share Price) + ((EPS - DPS) / NTA Backing)

It appears that the theory goes:
IF CGVI > 30 Very good buying opportunity (ensure trend is in right direction)
IF CGVI > 24 Good buying opportunity (ensure trend is in right direction)
IF CGVI > 20 Accumulate if already owned
IF CGVI > 17 Hold if owned
IF CGVI > 12 Stay out

My assumption is that anything less than 12, avoid like the plague.

I also assume that companies that either do not have a high dividend payout ratio, or those that are paying out dividends not via earnings but by borrowings, and those with a very low share price or NTA will cause anomolies in this index.

Does anyone use this indicator. If so, what conditions have you put on it's use?

Brett
 
brettc4 said:
Hi All,

On another post I saw a link to http://www.ascii-data.com/ which is very interesting. After downloading the spreadsheet I saw a column, 'CGVI' which I am not farmilar with. Thanks to Google I got to http://www.lainie.com.au/sharesguru/index.html where I could download a powerpoint on the subject.

Comparitive Growth and Value Indicator

In a nutshell:

CGVI% = ((EPS + DPS) / Share Price) + ((EPS - DPS) / NTA Backing)

It appears that the theory goes:
IF CGVI > 30 Very good buying opportunity (ensure trend is in right direction)
IF CGVI > 24 Good buying opportunity (ensure trend is in right direction)
IF CGVI > 20 Accumulate if already owned
IF CGVI > 17 Hold if owned
IF CGVI > 12 Stay out

My assumption is that anything less than 12, avoid like the plague.

I also assume that companies that either do not have a high dividend payout ratio, or those that are paying out dividends not via earnings but by borrowings, and those with a very low share price or NTA will cause anomolies in this index.

Does anyone use this indicator. If so, what conditions have you put on it's use?

Brett
Click to expand...

I've recently discovered this CGVI (8 years after you first enquired about it!). Wondering if anyone is using it still and how they've found it?
 
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