Dear All,
We have updated all but one of our Core rankings systems . The previous versions are still usable and have been moved to the Old P123 Systems folder.
There are two main reasons for the refresh:
- There was a bug in the Operating Income Long Term acceleration formula in Core Growth, which was propagated to the Core Combination systems
- Several formulas and factors were using older styles, deprecated factors, or were not using newer expression shortcuts.
The main reason for the refresh is the bug in the first item: the overly complex formula that was used for the LT acceleration of OpInc (the LT acceleration for Sales is correct). More precisely it was subtracting a non annualized 5Y growth from the latest TTM growth.
Since it’s just one of many factors the effect on your strategy should not be significant, and even less so for the Combination ones. But it is wrong. We strongly suggest to switch to the newer more correct version.
We will also launch a revised P123 Model for Multifactor Europe - Mid to Micro Cap because it uses a Core Combination ranking system.
Very sorry about this. It’s yet another proof to apply the KISS principle in writing formulas.
For a detailed list of the changes see this google sheet
