"Fit a regression line through the earnings per share."In Excel, is this =LINEST(known y's) ?"..and measure the R-squared quality of fit.The better the fit, the steadier the earnings."In Excel, is this =RSQ (.. ) ?"- Some sane constant to set a cap. 10-12-15% maybe?"In Excel, is this =SMALL(bvg5, eps5, projEPS, max 15%?? (i.e. SMALL(C4, D4, E4; >= 15, 15 ???)"This sort of pure-quant analysis would be goodfor finding candidates, but a lot more examinationwould be in order. Sometimes a firm withpreternaturally smooth earnings is actually a risky firm."I planned on narrowing the list first by low debt,consistent/above ave ROE, etc. Then, run remainingthrough some acct'g ratios such as Cash Flow from Financing/ Ave Tot Assets,Bal Sheet Accrual RatioTotal Assets/Total AccrualsSo, you would recommend doing the pure-quant future EPS estimate AFTER I've narrowed the list to 50-60 quality firms?Thanks again Jim!John
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