We've added a new company Snapshot called Percentile Rank. This innovative snapshot analyses and presents the percentile rank for various stock metrics. You can quickly see how a company ranks based on various fundamental metrics like valuation, margins, profitability, and performance. Percentile rank ranges 0 - 100, and tells you what percentage of data points in a cohort have lower or higher values. The percentile rank values are calculated vs. the stock's history and vs. the metric of other stocks.
You can try out the new feature here.
Historical Percentile Rank
You can now see a stock's percentile rank in relation to its own 10-year and 20-year history. This can help you understand how the stock’s metric compares vs. the historical range.
Percentile Rank Comparison
You can see a stock's percentile rank versus all the stocks in the company's sector, country, region, and even globally. This feature gives you a wider perspective and helps you contextualize a company's fundamentals and valuation within the broader stock market.
In the screenshot above, Apple (AAPL) has an NTM P/E of 28.0x. However, that doesn’t tell us whether Apple is cheap or expensive vs. other stocks or vs. its history. The percent rank columns shed some light on this question.
AAPL’s PE is in the 89th percentile vs. 10 year history which means the valuation is elevated vs. the historical range. In other words, AAPL’s P/E has almost always been lower than the current level. It’s been higher only 11% of the time over the past 10 years.
AAPL’s PE is in the 61st percentile vs. US Tech stocks which means the P/E is about in the middle versus the P/E of other stocks in the US Tech sector. In other words, AAPL’s P/E is higher than 61% of the US tech stocks, and lower than 39% of tech stocks.
A high percentile rank for P/E isn’t necessarily bearish, just like a high P/E isn’t necessarily bearish. However, the percentile rank helps you understand the context around valuation and fundamental metrics.
The Percentile Ranks snapshot is available for S&P 500 companies for all users. Only users with paid plans can see the snapshot for companies outside the S&P 500.
The Percentile Rank can be used in Watchlists, Screener and Market Scatter.
For further information, see the original release notes for Percentile Rank.
Check out this video demo to see how to get the most out of Percentile Rank snapshot: