A word from one of the founders:
The initial inspiration for Verdant Analysis came from my attempt to mimick the financial analysis techniques outlined in Lev and Thiagarajan's work "Fundamental Information Analysis".
This academic, scientifically conducted study demonstrated that "fundamentals add approximately 70%, on average, to the explanatory power of earnings with respect to excess returns."
I was fascinated by this, along with other similarily rigourous studies that demonstrated that "alpha" could be consistently achieved when an analytical framework was used with financial statement information (as well as research into management and some industry and macro-economic knowledge).
My first attempt was to build the ratios manually, downloading financial statements, entering the data into spreadsheets and then doing the calculations.
It was an unbelievably tedious and frustrating experience.
It took weeks to build out the model with a small set of securities. I made mistakes, the data would get stale and at the end of the process, I had looked at about dozen stocks. A dozen out of a potential North-American universe of thousands.
I then looked for software that would let me build investment models. I couldn't find anything initially. Eventually I did find something, but it was targeted to big institutions and completely out of my price range.
Long story short, we saw a market need and we started this company to serve it. We are powerful yet intuitive investment analysis software.
I think of what we do as providing a scientific framework for investment analysis. It isn't about the investment style. This framework will work for as well for a value approach as it will for a growth approach. It is about providing a "laboratory" for creative, methodical and rational inquiry.
Our goal is make this process faster, easier and more effective.