The ground breaking Intellectual Capital valuation tool

icTracker for India

Intellectual Capital analysis of leading stocks in India

icTracker for United States

Intellectual Capital analysis of leading stocks in United States

Although the relevance of Intellectual Capital as a driver of growth in the knowledge economy has been established beyond doubt, its measurement and reporting remains a distant dream. icTracker is a groundbreaking Intellectual Capital tracking tool that has been conceptualised by Attainix Consulting to address this shortcoming.

icTracker calculates the Intellectual Capital of some of the leading businesses worldwide, from their publicly reported financials, every quarter. Along the way, icTracker also calculates the EVA® and Knowledge Basis of the stock. These three parameters lead to a simple three-step stock picking process, that can be used effectively by any investor to quickly make good long term picks for his/her portfolio.

Here are the three steps in order:

STEP 1. INCOME Measure - Is the business generating enough income to cover its cost of capital?

Accounting profits reported by the business every quarter do not correctly indicate whether the business is making money. Therefore to answer this question, we look at the EVA® for the quarter, which represents the excess money made by the business AFTER covering its cost of capital.

STEP 2. ASSET QUALITY Measure - Does the business have significant Knowledge assets?

In this step, we look at whether the business is making money primarily from its Knowledge Assets, since such assets are a source of long term competetive advantage for the business. Knowledge Basis - a ratio of the Intellectual Capital of the Business to its Intrinsic Worth - is considered for this purpose. This ratio should ideally be more than 50% on a sustained basis.

STEP 3. MARKET Measure - Is the stock undervalued?

Finally, if the stock passes both the Income and Asset Quality tests, we look at whether it is undervalued by the market at present. If so, this presents investors with a buying opportunity of an excellent business.

That's how simple it is to select quality stocks, using the power of Intellectual Capital analysis.

If you like what you see, have a question, a comment or otherwise want to provide feedback, please Contact Us