Stock Price

At DeMarche, we understand the drivers of stock price. We know the markets and the investment managers. DeMarche's extensive body of stock research has identified the different metrics that impact price. Changing markets will accentuate different factors, e.g., sales growth during bull markets and quality of earnings during bear markets. Our factor model is built on 55 factors over 31 industry groups to help understand how individual stock returns can be dissected into their explanatory components in different phases of the market. Objective statistical analysis provides the analytic platform to understand how financial and technical metrics interact to furnish insight into how a stock is priced the way it is.

Once there is an understanding of why a stock is priced the way it is, the next obvious question of whether the company is fairly valued in the market is usually posed. To answer that question, DeMarche has developed a unique stock cloning process that compares your stock with not only your traditional industry peers, but also companies from allied industries that are also competitors for capital due to having similar financial characteristics. This process provides a statistically robust universe for determining much more precisely how your company is being viewed in the market from a valuation point of view.

In order to truly understand a stock's price, or P/E, it is not only necessary to appreciate how underlying financial and technical factors interact to explain the price, but also necessary to understand how the stock is valued in the market relative to its "clones" or competitors for capital. DeMarche is in the unique position to deliver those answers through its proprietary factor model and stock cloning methodologies.