Quantitative Value Intelligence · Phase 1 · Live
Where data reveals value.
The market is wrong, on a schedule. Quantitative value investing exploits the systematic mispricing of stocks that are cheap on earnings yield, efficient on capital, and financially sound — all at once. Gray and Carlisle proved the composite outperforms across six decades of data.
Melquiades computes that composite for 20,847 securities across nine exchanges, updated nightly. No subscriptions. No opinions. No noise.
Melquiades computes that composite for 20,847 securities across nine exchanges, updated nightly. No subscriptions. No opinions. No noise.
20,847
Global Securities
9
Exchanges
Gray QV
Methodology
4
Composite Factors
▶ OPEN SCREENERNO API KEY · MIT LICENSE
TICKER LOOKUP
#1BABAQV 91
#2VOW3QV 88
#3VALEQV 86
#4MFGQV 84
#5ENIQV 81
#6KVUEQV 80
#7BHPQV 77
#8MOQV 76
⌕
SELECT A STOCK ABOVE
TO SEE ITS QV PROFILE
FACTOR SCORES · PERCENTILE RANKS
KEY METRICS · PRICE SPARKLINE
TO SEE ITS QV PROFILE
FACTOR SCORES · PERCENTILE RANKS
KEY METRICS · PRICE SPARKLINE
TOP-RANKED STOCK — THIS WEEK
● QV RANK #1 · HIGHEST COMPOSITE SCORE
BABA
Alibaba Group Holding · HK · Technology
QV RANK
#1 / 20,847
TEV/EBIT
5.4×
F-SCORE
8 / 9
Z-SCORE
4.1
ACCRUALS
-9.0%
ROIC
21.0%
Ranks first globally on composite QV score. Trades at 5.4× TEV/EBIT — three times cheaper than the US market average on an enterprise earnings basis. Piotroski F-Score of 8/9 signals improving financial health. Negative accruals confirm cash earnings exceed accounting profit. A textbook Gray QV selection.
THE FOUR FACTORS
FACTOR 01
TEV / EBIT
Enterprise Value Multiple
Total Enterprise Value ÷ EBIT
The core valuation multiple. Total Enterprise Value divided by operating earnings — the "price" you pay per dollar of profit across the whole capital structure. Cheaper is better. Below 10× is typically attractively valued; above 20× suggests the market is pricing in substantial future growth. Gray and Graham both anchor here.
EXAMPLES FROM UNIVERSE
BABA5.4×
VOW34.9×
ENI4.2×
FACTOR 02
ROIC
Return on Invested Capital
NOPAT ÷ Invested Capital
Measures how efficiently a business deploys capital. High ROIC companies compound structurally — they earn more on every dollar reinvested. Combined with cheap valuation, ROIC identifies quality value rather than value traps. The insight: cheapness alone is never enough.
EXAMPLES FROM UNIVERSE
MO48.1%
AAPL52.3%
BHP29.4%
FACTOR 03
PIOTROSKI F-SCORE
9-Signal Financial Health Index
Σ 9 binary signals across profitability, leverage & efficiency
Nine binary yes/no tests drawn from financial statements: profitability improvement, leverage reduction, liquidity improvement, asset turnover. Score 7–9 signals improving fundamentals. Score 0–3 is a distress warning. Gray uses it to eliminate value traps — stocks cheap for a very good reason.
EXAMPLES FROM UNIVERSE
BABA8/9
MFG7/9
BHP7/9
FACTOR 04
ACCRUALS RATIO
Earnings Quality Signal
(Net Income − CFO) ÷ Avg Total Assets
Sloan's accruals anomaly: when accounting earnings exceed cash flows, the gap usually mean-reverts. Negative accruals mean cash is outrunning accounting profit — a quality signal. Large positive accruals flag aggressive recognition or one-time gains. The model penalises this directly.
EXAMPLES FROM UNIVERSE
VALE-11.0%
KVUE-7.0%
BABA-9.0%
WHY THIS EXISTS
“The intelligent investor is a realist who sells to optimists and buys from pessimists.”
— BENJAMIN GRAHAM, 1949
Most investors underperform because of behavioural error — anchoring, recency bias, loss aversion. The solution is not discipline. It is elimination. A quantitative system that ranks every stock by the same objective criteria, ignores earnings calls, and rebalances mechanically.
Gray and Carlisle demonstrated in Quantitative Value (Wiley, 2012) that a four-factor composite produces persistent excess returns across every market studied. Not because it is sophisticated. Because it is systematic and unemotional.
Gray and Carlisle demonstrated in Quantitative Value (Wiley, 2012) that a four-factor composite produces persistent excess returns across every market studied. Not because it is sophisticated. Because it is systematic and unemotional.
PRINCIPLE 01
No opinions, ever.
Every ranking is derived from published financial statements. No analyst forecasts, no sentiment, no price momentum.
PRINCIPLE 02
Global scope.
NYSE, NASDAQ, Tokyo, London, Frankfurt, Sydney, Toronto, Euronext, Borsa Italiana. Same formula for all 20,847 securities.
PRINCIPLE 03
Complete transparency.
Every formula, input, and percentile is shown. Click any score to see the exact decomposition from raw data to composite rank.
PRINCIPLE 04
Open source.
The full codebase — data engine, QV computation, API, frontend — is MIT licensed. Fork it, audit it, extend it.
THE QUANTITATIVE CASE
Why does this
method work?
Six decades of back-tested evidence show that systematically buying cheap, quality businesses and rebalancing annually outperforms discretionary stock-picking. The academic literature is deep. The practitioner evidence is compelling. The behavioural reason is intuitive.
+4.3%
ANNUAL EXCESS RETURN VS. S&P 500 (1974–2024, SIMULATED)
0.71
SHARPE RATIO — GRAY QV COMPOSITE (ILLUSTRATIVE)
-28%
MAX DRAWDOWN — QV STRATEGY VS -37% BENCHMARK (2008)
92%
OF ROLLING 5-YEAR PERIODS WHERE QV OUTPERFORMED (SIMULATED)
RECOMMENDED READING
FOUNDATIONAL TEXT
Quantitative Value
Wesley Gray & Tobias Carlisle
The methodological basis of Melquiades. Gray and Carlisle back-test every factor, construct the four-factor composite, and prove its long-run superiority over qualitative stock-picking. Essential.
VIEW REFERENCE ↗INTELLECTUAL FOUNDATION
The Intelligent Investor
Benjamin Graham
The original articulation of value investing. Graham's concept of margin of safety, Mr Market, and intrinsic value underpin every factor in the QV model. Chapter 8 and Chapter 20 are the most important 40 pages in investing.
VIEW REFERENCE ↗ACADEMIC RESEARCH
Value and Momentum Everywhere
Asness, Moskowitz & Pedersen
The landmark paper showing that value and momentum factors work across every asset class and every developed market. The most important empirical validation of factor investing since Fama-French.
VIEW REFERENCE ↗WHO WE ARE
Melquiades is an independent, open-source quantitative finance platform. Built to make professional-grade value screening accessible — without subscriptions, paywalls, or vendor lock-in.
Named after the old gypsy from One Hundred Years of Solitude, who carried all of the world's knowledge in manuscripts that no one else could read.
Named after the old gypsy from One Hundred Years of Solitude, who carried all of the world's knowledge in manuscripts that no one else could read.
CONTACT
Questions, feedback, or collaboration proposals:
hello@melquiades.app
Bug reports and code contributions:
github.com/giuseppesiragusax/melquiades
hello@melquiades.app
Bug reports and code contributions:
github.com/giuseppesiragusax/melquiades
DISCLAIMER
Melquiades is an informational tool only. Nothing on this platform constitutes investment advice, financial advice, or a recommendation to buy or sell any security. All data is sourced from public APIs and may contain errors.
Past performance does not predict future results. Always do your own research.
Past performance does not predict future results. Always do your own research.
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20,847 stocks ranked.
The top one is waiting.
The top one is waiting.
NO ACCOUNT REQUIRED · NO SUBSCRIPTION · MIT LICENSE · DATA FROM YAHOO FINANCE