ARGA’s investment process implements our valuation-based philosophy and approach in a step-by-step manner that is replicated by our analysts across the world. Key to the process are:
- Quantitative screening – Our process logically and systematically screens for investment opportunities. To narrow the large and growing universe of over 5,000 global stocks, we run quantitative screens based on key value metrics. Our process validates initial findings and focuses research on the most promising valuation candidates.
- Detailed company forecasts – Our DDM-based intrinsic valuations require detailed company analysis. Studying company and industry fundamental data, analysts build detailed models assessing drivers, risks and growth. They also assess quality while discussing business and ESG issues with company management.
- Consistent valuation comparisons – Our process compares valuations across companies, industries and geographies. That requires consistent industry and accounting assumptions. So analysts standardize global accounting variables and industry frameworks. Only then can we meaningfully compare intrinsic valuations to identify stocks with greatest potential.