Articles
| Open Access |
DOI:
https://doi.org/10.55640/ijefms/Volume10Issue11-02
The RANKS Multi-Factor Rating Model for Undervalued Stock Selection
Valerii Zolotukhin , President of Impact Capital, Elektricheskie Lane, building 3/10, Building 1, Office 1N/6 Moscow, 109378, Russian FederationAbstract
As traditional stock valuation methods struggle with the complexity of modern financial markets, new frameworks are required. This paper presents the RANKS multi-factor rating model, a systematic tool for identifying undervalued public companies. The methodology is based on a hybrid "quantamental" approach, blending the depth of fundamental analysis with the discipline of quantitative algorithms. The model's architecture consists of seven blocks that evaluate over 150 financial, market, and corporate metrics across a universe of 55,000 global companies. A key distinction is its integration of non-traditional data, including operational and human capital indicators, for a more comprehensive assessment. Case studies are analyzed to evaluate the model's empirical effectiveness in generating alpha, positioning it as apractical implementation of advanced active investment strategies.
Keywords
multi-factor model, quantitative analysis, fundamental analysis, hybrid approach, stock selection, undervalued assets, alternative data, alpha-generating strategy
References
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