Metrics Center

At DeMarche, our business is objectivity. We know the markets and the managers. We also know that your bankers, accountants and PR firms each deliver somewhat different opinions about what drives your stock price.

Our research shows that different metrics drive different stocks in different markets. So, what's a CFO to do? Our benchmarking research can help you determine the best metrics for your company and help develop the right message - both internal and external - to attract the best investors for your stock. Knowing what investors want helps you deliver it - it's that simple. Fit this strategy into your strategic plan and enjoy the benefits of the having the right central message. Now, that's maximizing shareholder value!

DeMarche's extensive research over the last 10 years has identified that different markets focus on different factors, i.e. "Sales Growth" in the late 1990s and "Management and Accounting Quality" in 2001-02. The market wants different metrics for growth stocks and value stocks at different times in the market.

Objective analysis is needed to understand how financial metrics interact and to understand in which markets each metric will be the most powerful. The table below shows some of the key metrics selected from our total research project and identifies the predictive power of each. Should you have questions about a specific metric, please contact Mark Meierhoffer, Practice Leader & Senior Consultant, at (913) 384-4994.

PREDICTABILITY OF ONE-YEAR RETURN PREMIUMS
TO S&P 500 BY VARIOUS METRICS

Data is from 12/78 - 12/01

Note: DeMarche's study separated the 3,000 most liquid stocks into 20 equal groups, i.e. ventiles. We then studied the subsequent yearly stock performance of each company from 1978-2001.