What is quantitative stock analysis?

Quantitative stock analysis uses mathematical models, statistical methods, and machine learning algorithms to evaluate securities. StoQuant combines 93 features including technical indicators, fundamental ratios, sentiment signals, and macro data to generate alpha scores for 822 stocks.

How does the hidden gem screener work?

The hidden gem screener uses the Benjamin Graham intrinsic value formula (V = EPS x (8.5 + 2g)) to identify undervalued small-cap stocks. It filters for P/E under 15, P/B under 1.5, PEG under 1.0, debt-to-equity under 0.5, and flags stocks trading at least 30% below intrinsic value with fewer than 8 analyst coverage.

What machine learning models power the predictions?

StoQuant uses a 3-model stacking ensemble: LightGBM, CatBoost, and XGBoost with a logistic regression meta-learner. Predictions are calibrated with Venn-ABERS conformal prediction. The system uses 93 features spanning technical, fundamental, sentiment, macro, and alternative data signals.

How does portfolio optimization work?

StoQuant integrates ML price forecasts with the Black-Litterman portfolio optimization model. ML predictions serve as investor views (Q vector) with model confidence intervals mapped to uncertainty (omega matrix). This produces optimal portfolio allocations that blend market equilibrium with AI-driven insights.

Is my portfolio data secure?

Yes. StoQuant uses JWT authentication with timing-safe comparisons, rate limiting (300 req/min per IP), secure headers (HSTS, X-Frame-Options, X-Content-Type-Options), and portfolio ownership verification on every request. No sourcemaps are exposed in production.

What data sources does StoQuant use?

StoQuant aggregates data from SEC EDGAR filings, FMP financial data, social media sentiment (Reddit, StockTwits, Twitter), Google Trends, insider trading records, institutional holdings, options flow, and macro economic indicators from FRED. All data is stored as append-only time series.

Does StoQuant work with Claude Desktop or Claude Code?

Yes. StoQuant ships an official Model Context Protocol (MCP) server, stoquant-mcp, available on npm. One command — npx -y stoquant-mcp install — wires Claude Desktop, Claude Code, or any MCP-compatible client into roughly 30 read-only stock-research tools: prices, Q-Score, ML predictions, hidden-gem screener, insider trades, market regime, and macro dashboards. Power-tier subscription required.

Intrinsic value calculator using Benjamin Graham's proven formula

For any Russell 2000 or S&P 500 stock, compute fair value with V = EPS × (8.5 + 2g). See the current price vs. intrinsic value and the margin of safety.

Benjamin Graham's formula applied to 822 stocks daily

Benjamin Graham's intrinsic-value formula is simple: V = EPS × (8.5 + 2g). The 8.5 is the baseline P/E for a stock with zero growth; 2g is the premium for expected annual growth. StoQuant computes this daily for all 822 tracked stocks, adjusting g (growth rate) for the current AAA bond yield and capping it at 15%. You input a ticker or browse the list; we show the calculated intrinsic value, current price, margin of safety, and a visual gauge. No black-box ML, no opinions — just Graham's framework applied consistently across the small-cap and mid-cap universes.

How it works

Fetch EPS and growth rate — For any stock, pull the trailing 12-month EPS from append-only fundamentals history. Estimate long-term growth using analyst consensus, adjusted for the current risk-free rate.
Apply the formula — V = EPS × (8.5 + 2g). Cap g at 15% to avoid excessive premiums in high-growth names. Scale the 8.5 baseline if current AAA bond yield differs materially from Graham's original 4%.
Calculate margin of safety — Compare current price to intrinsic value V. If price < 0.7 × V, the margin of safety is at least 30% — Graham's minimum requirement for a sound investment.

Related on StoQuant

Understand the theory: Benjamin Graham Formula (stoquant.com/learn/benjamin-graham-formula) and Margin of Safety (stoquant.com/learn/margin-of-safety). See today's gems: Today's Hidden Gems (stoquant.com/today/hidden-gems). Compare methodologies: StoQuant vs Simply Wall St (stoquant.com/compare/simply-wall-st).

FAQ

What is Benjamin Graham's formula?

V = EPS × (8.5 + 2g), where EPS is trailing earnings per share and g is expected long-term annual growth (%). The 8.5 is the P/E for zero-growth; 2g adds value for growth. Graham published this in 1962.

How does StoQuant adjust the formula?

We cap g at 15% to avoid inflating high-growth names, and adjust the 8.5 baseline if current AAA bond yields differ from Graham's original 4%. Growth estimates come from FMP analyst consensus.

What is margin of safety?

The gap between intrinsic value and current price. Graham required at least 30% margin of safety (i.e., price < 0.7 × intrinsic value) to account for valuation errors and market cycles.

How often is the intrinsic value updated?

Daily, after the close of market hours. EPS and growth estimates are refreshed from FMP; you can track historical intrinsic values in your stock research reports.