DVM stands for Durability, Valuation, and Momentum. The DVM scores help investors to evaluate the suitability of a stock in their portfolio. A stock with a high DVM score is more promising. A stock can have a DVM score in the range of 0-100. Investors can use prebuilt screeners to identify High DVM, Mid DVM, and Low DVM stocks. You can track these to identify stocks that are entering or exiting these screeners.
DVM score also helps investors in selecting the best performing list of stocks and dodging bad performing stocks. This is what the score for each element of the DVM score indicates:
Durability score is based on the company’s financials, growth, performance, and management performance as well. A stock with a high durability score indicates that it consistently saw high financial performance, in terms of revenue, cash flows, and low debt.
Valuation score is based on the current price, price-to-earnings multiple of P/E, as the stock may be in trend and the price will be high. Valuation score helps in identifying the overvalued stocks.
Momentum score is based on the bullish and bearish nature of the stock along with its technicals. High momentum score in stock increases its volume, improving sentiment, and price.
DVM scores are updated at least every day at the end of the day automatically.
D and V are also automatically updated when new data like results information or shareholding information or insider data is updated during the day.