Page 3 - Evaluation - The Studies continued   [3 Go Back]

Bar and Line Graphs
        Each of the four Studies has a bar and/or line graph element that is plotted directly from the fundamental data entered by the user on the Data Entry page. Two of the Studies - Cash Flow and Earnings, also graph derivatives of this primary data on a second graph. The two graphs share the space occupied by a single graph on the other Studies. These secondary graphs will be examined in greater detail when the Individual Studies are discussed. As illustrated to the left, a legend displays the color and pattern of the Bar and Line Graphs and identifies the data type used to plot the particular graph element. The legend also identifies any other graph components used in that portion of the Study, Today's Stock Price will be posted, when relevant to that Study. A legend accompanies each of the Study graphs.
       

The Trend Line

        Each of the primary Studies displays a heavy red line interrupted by red and yellow hatch marks, this is the Trend Line. The square red hatch marks are paired with the dates below and represent the end of each fiscal year of data being displayed on the graph. The first of  yellow dots on the right end of the Trend Line denotes the end of the current fiscal year, the next five yellow dots represent the end of the next five future fiscal years.
        The illustration below shows what a typical Study looks like when first opened prior to any changes or modifications made by the user. The slope of the Trend Line is determined by the growth rate, which, as noted earlier, is the same as the Historic Growth rate when the Study is viewed for the first time. Maintaining the slope of the Trend Line, Equity Evaluator either raises or lowers the Trend Line location, until it is centered on the fundamental data bar or line graph. 

        Centering occurs when the area between the Trend Line and the bar or line graph is divided evenly above and below the Trend Line. When using the Logarithmic graph type, these areas may not appear equal. This distortion is due to the fact that a Log graph does not depict absolute value. On the Study displayed above, the earliest data point, on the left, aligns with the left end of the Trend Line. This is a coincidence, as there is no relationship between the two. 

Centering Command Button
        This button face shows a dark gray square with a vertical line down the middle. This indicates that the Trend Line is centered on the line graph. Once the location of the Trend Line is altered, moving it off center, the image on the face of the Centering button will change from the label shown above to the one shown to the left. This change is meant only to keep the user informed, and has no direct bearing on the evaluation of the data. 
        Once the Trend Line has been taken off center for the first time, Equity Evaluator will use one of two variables to accomplish the task of centering when the Centering button is clicked. If the user last altered the Growth rate,  the program will center using the vertical location of the Trend Line while maintaining the Growth rate set by the user. Conversely, if the vertical location was altered last, the Trend Line will be centered by changing the Growth rate only, and maintaining the vertical location of the Trend Line.