Economic Profit (Fixed & Labeled) — Rated + PeersFRAC (Fundamental-Rated-Asset-Calculate)
FRAC is a fundamentals-driven tool designed to measure whether a company is creating or destroying shareholder value. Unlike surface ratios, FRAC uses Economic Profit (ROIC – WACC) as its engine, showing whether a business truly outperforms its cost of capital.
🔹 What FRAC Does
Calculates ROIC (Return on Invested Capital) vs. WACC (Weighted Average Cost of Capital).
Shows whether a company is creating or destroying shareholder value.
Uses tiered color coding for clarity:
🔵 Superior (Aqua Blue) → Top tier; best of the best.
🟣 Elite (Purple) → Strong value creation.
🟢 Positive (Green) → Solid, creating shareholder value.
🟡 Marginal (Yellow) → Barely covering cost of capital.
🔴 Negative (Red) → Value destruction.
🔹 Composite Ranking System (1–4)
FRAC also assigns each company a Composite Rank so you can compare multiple names side by side. The rank works like this:
Rank 1 → Superior (🔵 Aqua Blue)
Best possible rating; wide gap between ROIC and WACC.
Rank 2 → Elite (🟣 Purple)
Strongly positive; above-average capital efficiency.
Rank 3 → Positive (🟢 Green)
Creating value but only moderately; not a top compounder.
Rank 4 → Marginal/Negative (🟡/🔴)
Weak or destructive; either barely covering WACC or losing money on capital.
✅ How to Use the Ranks
When comparing a set of peers (e.g., NVDA, AMD, INTC):
FRAC will display each company’s color rating + composite rank (1–4).
You can instantly see who is strongest vs. weakest in the group.
Best decisions = overweight Rank 1 & 2 companies, avoid Rank 4 names.
🔹 Key Inputs Explained
Risk-Free Asset → Typically the 10-Year US Treasury yield (US10Y).
Corporate Tax Rate → Effective tax rate for the company’s country (e.g., USCTR).
Expected Market Return → Historical average ~8–10%, adjustable.
Beta Lookback Period → Controls how far back Beta is calculated (longer = more stable, shorter = more reactive).
👉 These must be set correctly for FRAC to calculate WACC accurately.
🔹 Example Comparison
NVDA: ROIC 25% – WACC 7% = +18% → 🔵 Superior → Rank 1
AMD: ROIC 17% – WACC 8% = +9% → 🟣 Elite → Rank 2
INTC: ROIC 11% – WACC 9% = +2% → 🟢 Positive → Rank 3
FSLY: ROIC 5% – WACC 10% = –5% → 🔴 Negative → Rank 4
🔹 Why It Matters
Buffett said: “The best businesses are those that can consistently generate returns on capital above their cost of capital.”
FRAC turns that into a visual + numeric rating system (1–4), making comparisons across peers simple and actionable.
🔹 Credit
FRAC was created by Hunter Hammond (Elite x FineFir), inspired by corporate finance models of Economic Profit and Economic Value Added (EVA).
⚠️ Disclaimer: FRAC is a research framework, not financial advice. Always pair with full due diligence.
Stockanalysis
EPS+Sales+Net Profit+MCap+Sector & Industry📄 Full Description
This script displays a comprehensive financial data panel directly on your TradingView chart, helping long-term investors and swing traders make informed decisions based on fundamental trends. It consolidates key financial metrics and business classification data into a single, visually clear table.
🔍 Key Features:
🧾 Financial Metrics (Auto-Fetched via request.financial):
EPS (Earnings Per Share) – Displayed with trend direction (QoQ or YoY).
Sales / Revenue – In ₹ Crores (for Indian stocks), trend change also included.
Net Profit – Also in ₹ Crores, along with percentage change.
Market Cap – Automatically calculated using outstanding shares × price, shown in ₹ Cr.
Free Float Market Cap – Based on float shares × price, also in ₹ Cr.
🏷️ Sector & Industry Info:
Automatically identifies and displays the Sector and Industry of the stock using syminfo.sector and syminfo.industry.
Displayed inline with metrics, making it easy to know what business the stock belongs to.
📊 Table View:
Compact and responsive table shown on your chart.
Columns: Date | EPS | QoQ | Sales | QoQ | Net Profit | QoQ | Metrics
Metrics column dynamically shows:
Market Cap
Free Float
Sector (Row 4)
Industry (Row 5)
🌗 Appearance:
Supports Dark Mode and Mini Mode toggle.
You can also customize:
Number of data points (last 4+ quarters or years)
Table position and size
🎯 Use Case:
This script is ideal for:
Fundamental-focused traders who use EPS/Sales trends to identify momentum.
Swing traders who combine price action with fundamental tailwinds.
Portfolio builders who want to see sector/industry alignment quickly.
It works best with fundamentally sound stocks where earnings and profitability are a major factor in price movements.
✅ Important Notes:
Script uses request.financial which only works with supported symbols (mostly stocks).
Market Cap and Free Float are calculated in ₹ Crores.
All financial values are rounded and formatted for readability (e.g., 1,234 Cr).
🙏 Credits:
Developed and published by Sameer Thorappa
Built with a clean, minimalist approach for high readability and functionality.
