Show ROIC averages instead of growth rates
Closed this issue · 2 comments
mrhappyasthma commented
The initial implementation shows the ROIC growth rate, but the book recommends just looking at the averages.
This will be a more consistent experience with the valuation methods in the book.
mrhappyasthma commented
The problem is with this line:
https://github.com/mrhappyasthma/IsThisStockGood/blob/master/src/Morningstar.py#L89
In code we call it roic_averages
but it gets assigned the calculated growth rate.
This is a problem because the delta in growth rate of ROIC is not what we care about. For instance, if a company had 1%
ROIC and then next year had 2%
ROIC, this would be a significant rate of change. But neither year met the 10% minimum dictated by Rule #1.
mrhappyasthma commented
Fixed in b60a3a6