REFS is
a mine of invaluable information for the private investor.
Selecting shares without its help is like trying to
clap with one hand tied behind your back.
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Trend calculation - description
Trend values are shown in the
half-page AIM company entries, located the back of the Tables Volume of Company
REFS, appearing as a separate column within the Historical Performance panel.
In addition, trend values form
the basis of certain tables within the Tables section, namely the tables of 3-year
and 5-year growth companies. These refer to the trend of EPS values, over 3- and
5-year periods respectively.
Trend calculations, for example
a 5-year EPS trend, display the statistical annual trend of growth (+) or decline
(-) of a given time-series, in this case a time-series of EPS values. This is
the rate of growth or decline reflected by the same series of results from which
an average value would be derived, except that an additional preceding base period
is required as a starting point.
The trend reflects the compound
annual rate of growth derived by applying regression analysis techniques to interpolate
a ‘best-fit curve’ plotted for all results in the series. It is not based solely
on the opening and closing values in the series. A minimum of three values is
required in order to calculate a growth trend.
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