A guide to using ShareValue.ai responsibly and effectively for stock research
Remember: ShareValue.ai is an educational research tool, not an investment advisor.
We help you learn to analyze stocks yourself. We do NOT tell you what to buy or sell.
What ShareValue.ai Does
1. Screens Stocks Based on Fundamentals
We analyze thousands of stocks using quantitative metrics:
- Quality: Profitability, efficiency, and financial strength
- Valuation: Price relative to earnings, book value, and cash flow
- Momentum: Price trends and technical indicators
- Health: Debt levels, liquidity, and financial stability
2. Provides Ratings and Scores
We assign ratings (High/Medium/Low) based on our analysis:
- Fundamental Rating: Overall assessment combining all factors
- Composite Score: Numerical score (0-100) for fundamentals
- Value Trap Risk: Warning system for potential value traps
3. Organizes Information
We present complex financial data in an easy-to-understand format:
- Visual scorecards and charts
- Sector leaderboards
- Comparison tools
- Explanations of metrics
What ShareValue.ai Does NOT Do
We Do NOT:
- Provide personalized investment advice
- Make buy or sell recommendations
- Tell you what to do with your money
- Guarantee investment returns
- Replace professional financial advisors
- Conduct due diligence for you
The Responsible Research Process
Here's how to use ShareValue.ai as part of a comprehensive research process:
Step 1: Identify Candidates
Use ShareValue.ai to:
- Browse sector leaderboards
- Search for specific stocks
- Filter by ratings and scores
- Identify stocks with strong fundamentals
This is a starting point, not a buy list
Step 2: Review Our Analysis
Understand what our ratings mean:
- Read the explanations for each metric
- Check the underlying scores
- Review the verdicts (Quality, Valuation, Momentum, Health)
- Note any warnings (Value Trap Risk, Financial Health)
Understand the methodology, don't just follow ratings blindly
Step 3: Do Your Own Research
Critical Step - Do NOT Skip!
- Read Financial Statements: 10-K, 10-Q, earnings reports
- Listen to Earnings Calls: Understand management's perspective
- Research the Industry: Competitive landscape, trends, risks
- Check News: Recent developments, controversies, changes
- Verify Our Data: Cross-check numbers with other sources
- Consider Qualitative Factors: Management quality, competitive moats, growth prospects
This is where the real work happens
Step 4: Consult Professionals
Seek professional advice:
- Discuss with a qualified financial advisor
- Consider your personal financial situation
- Review your investment goals and risk tolerance
- Get tax advice if needed
Professional advisors can provide personalized guidance
Step 5: Make Your Decision
Only after completing all previous steps:
- Form your own investment thesis
- Decide if the stock fits your portfolio
- Determine appropriate position size
- Set entry and exit criteria
- Make your investment decision
YOU are responsible for this decision
Understanding Our Ratings
Fundamental Rating (High/Medium/Low)
This combines fundamentals, momentum, and value trap risk:
- High: Strong fundamentals + Positive momentum + Low value trap risk → Best candidates for further research
- Medium: Good fundamentals + Neutral/Positive momentum → Solid candidates worth investigating
- Low: Weak fundamentals, negative momentum, or high value trap risk → May not meet investment criteria
Remember: Even "High" ratings are starting points, not buy recommendations
Composite Score (0-100)
Numerical score combining Quality, Valuation, and Health:
- 80-100: Exceptional fundamentals
- 60-79: Strong fundamentals
- 40-59: Average fundamentals
- Below 40: Weak fundamentals
Value Trap Risk (Low/Medium/High)
Warning system for stocks that look cheap but may have problems:
- Low: Minimal warning signs
- Medium: Some concerning factors
- High: Multiple red flags - proceed with extreme caution
Common Mistakes to Avoid
Don't Do This:
1. Buying based on ratings alone - Always do your own research
2. Ignoring your risk tolerance - Consider your personal situation
3. Skipping professional advice - Consult a financial advisor
4. Trusting data blindly - Verify information independently
5. Forgetting about risks - You can lose money investing
6. Investing money you can't afford to lose - Only invest what you can afford
7. Making emotional decisions - Stay disciplined and rational
Investment Risks to Consider
Market Risks
- Stock prices can be volatile
- Market crashes and corrections happen
- Economic downturns affect all stocks
Company-Specific Risks
- Companies can fail or go bankrupt
- Management can make poor decisions
- Competition can erode profits
- Products can become obsolete
Data Risks
- Our data may have errors or delays
- Financial statements can be misleading
- Past performance doesn't guarantee future results
You can lose some or all of your investment
Only invest money you can afford to lose. Diversify your portfolio. Never put all your eggs in one basket.
Best Practices
Do This:
- Use ShareValue.ai as a starting point for research
- Verify all information independently
- Read financial statements and earnings calls
- Understand the business and industry
- Consult with qualified financial advisors
- Consider your personal financial situation
- Diversify your investments
- Invest for the long term
- Stay disciplined and avoid emotional decisions
- Continuously educate yourself about investing
Questions?
If you have questions about how to use ShareValue.ai, please review our Disclaimer and Terms of Service.
Key Takeaways
- ShareValue.ai is an educational tool, not an investment advisor
- Our ratings are starting points, not final answers
- Always do your own comprehensive research
- Consult qualified financial advisors
- Understand and accept investment risks
- YOU are responsible for your investment decisions