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Kenneth Fisher Price to Sales Screen 160 Qualifying

Kenneth Fisher Value is a value investing strategy based on the approach of US investor Kenneth Fisher, who wrote Super Stocks. The strategy aims to find value stocks but also considers some of the growth factors that were suggested by Ken Fisher's father, Philip Fisher. It looks specifically for stocks that appear undervalued based on the price-to-sales ratio. It also looks for low gearing, a history of earning growth, strong net margins and positive free cash flow. Ken Fisher wrote: "Very few investors have a rational basis for valuing growth stocks in the face of a lack of earnings. The stock loses supporters and falls, in time, much too far. The best managements react to difficulties and overcome them. In time, sales pick up. Later, profits begin to pick up. Simultaneously with the profit resurgence, the stock price begins to rebound." Latterly, Ken Fisher has suggested that the price-to-sales ratio has become less effective for identifying undervalued shares, however it continues to be widely used by investors.

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This is an independent study based upon the methods of...
Picture of Kenneth Fisher

Kenneth Fisher

Founder, chairman, and CEO of Fisher Investments. Author of 'Super Stocks'

Super Stocks

by Kenneth L. Fisher

Kenneth Fisher's 1984 book was seminal in identifying the significance of the price-to-sales ratio (PSR) as a value indicator. 

This screen uses the following criteria:

  • P/S < 0.75
  • Net Mgn % 5y Avg > 5
  • Gearing % < 40
  • FCF > 0
  • EPS 5y CAGR % > 15
  • # Brokers < 10

Results are sorted by:

  • P/S in ascending order


And limited to the first 200 Results


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Performance Tracking


Returns FTSE 100
1 week 3.7% 3.3% -2.0% 7.0% -7.1% -3.7% -5.2% -1.3%
1 month 8.8% 2.5% -1.5% -6.1% -15.2% -5.9% -5.5% -3.4%
3 months -20.7% -0.9% 0.3% -8.0% -15.2% -8.2% -14.9% -7.5%
6 months -18.1% -6.5% 12.8% -25.9% -32.0% -7.3% -13.1% -2.4%
1 year -28.3% -13.1% 39.8% -16.3% -7.2% -5.8% -31.9% -6.1%
2 years -13.9% 50.4% 91.5% 54.8% 7.6% 9.3% -45.4% 1.5%
Annualised 1.2% 9.0% 18.0% 25.7% 3.0% 17.5% -2.0%
 
Risks
Max Drawdown -69.2% -34.0% -55.5% -52.6% -36.7% -18.7% -47.0%
Avg Holdings 3.1 14 4.5 1.8 1.7 25 2.6
Diversification Low Moderate Low Low Low Good Low