1) TYKR is significantly more rigorous than other calculations.
The P/E Ratio uses 2 numbers and 1 calculation.
The P/B Ratio uses 4 numbers and 2 calculations.
TYKR uses 50 numbers and 50 calculations.
In the world of software engineering, if you were to run 1 or 2 tests (use one or two data outputs) and assume your software is “go-for-launch”, I’m sorry but you are gravely mistaken. If you ran 1 or 2 tests, you would be facing what’s called an “RGE” (Resume Generating Event). Pack your box and polish your LinkedIn profile, you just found yourself without a job!
With software engineering, we run dozens, hundreds, and sometimes thousands of tests. It’s a non-glamorous process and it’s a process that most finance professionals do not apply.
With TYKR, we apply the same software engineering methodology to stock investing. We use more data points and run more calculations that show, with a high probability, if the stock will rise or fall.
2) TYKR uses a point system.
As you read through the Sticker Price and arrive at the points at the end of this page, you’ll see that TYKR only applies 1 point (out of 20) to the MOS (Margin of Safety) which is the Share Price percentage off the Sticker Price. In other words, TYKR analyzes the overall financial health of a company, not just the MOS, to determine if it’s a wise investment.
A lot of investors will make buying and selling decisions based on Margin of Safety alone. Similar to making decisions solely on the P/E Ratio and P/B Ratio, it’s not rigorous enough.