This moddule is designed to screen the Russell 2000 stocks to identify growth stocks
A growth stock is defined as one the
- Displays a compound average growth rate that is greater than a hurdle rate equal to the sum of the Risk Free Rate (10 year US Treasury Bond) + Equity Risk Premium. a. Revenus last 10 years and last 5 years b. Earnings last 10 years and last 5 years c. Hopefully the growth rate for the last 5 years exceeds the growth rate of the last 10 yeras (growth accellerating)
- no Negative EPS over the last 20 quartrs
- Debt to equit ratio of < 50% The equity owners control the maority of the company
- Has a reasonable P/E ration (<= the average P/E of the S&P 500 (about 19.7 since 1957)
In addition, as with all stock selections the company should be a wealth creator -- ROIC > WACC