Glossary

WS Earnings Rank
The WS Earnings Ranking indicates zero to five stars received by each company based on the following achievements:
1 star = Growth of EPS from previous year to current year
2 star = Growth of EPS for 2 consecutive years
3 star = Growth of EPS for 3 consecutive years
4 star = Growth of EPS for 5 consecutive years
5 star = Growth of EPS for 10 consecutive years

EPS = Earnings per Share, based on average weighted number of shares outstanding in each financial year.
WS Earnings Grade
(A+) Profitable last 5 years, increasing each year. Net Margin > 15%
(A) Profitable last 5 years
(A-) Profitable last 3 years, increasing each year.
(B+) Profitable last 3 years
(B) Profitable current year & 3 of last 5 years (inconsistent)
(B-) Profitable current year & 2 of last 5 years
(C) Loss in current year
(D) Loss in current & previous years.
WS Dividend Rank
The WS Dividend Ranking indicates zero to five stars received by each company based on the following achievements:
1 star = Paid Dividend previous 2 years.
2 star = Dividend increased 2 consective years.
3 star = Paid Dividend previous 5 years.
4 star = Dividend increased for 5 consecutive years.
5 star = Dividend increased for 10 consecutive years.
WS 12% DCF Calculation
The WallStraits 12% DCF calculation provides a snapshot comparison between market valuation and intrinsic value of a business. The 12% DCF value represents the ‘discounted value of future cash flows over the next ten years’. This calculation makes the following assumptions: 1. net earnings is a good approximation of cash flows; 2. average of 12% annual earnings/cash flow growth; 3. discount (risk free) rate is 5%; 4. zero terminal value from year 11 onward; The ‘Sage Head’ discount ratings, showing how much the current share price is ‘discounted’ compared to the intrinsic (12% DCF) value, are assigned as follows… 0 Sage Head = Premium to <10% Discount 1 Sage Head = 10-19% Discount; 2 Sage Heads = 20-29% Discount 3 Sage Heads = 30-39% Discount 4 Sage Heads = 40-49% Discount 5 Sage Heads = >50% Discount
Corp Gov
The WS Corporate Governance rating gives each company a star for each of the following five achievements (5-star maximum rating): 1 star = 3+ Independent Directors 1 star = Detailed Annual Overview of Industry/Business Trends 1 star = Investor-Friendly Website Maintained 1 star = Business Times Corporate Governance Rating 60+ 1 star = Whistle-Blower Program Instituted