Contents of this article:
Portfolio Hub
The Portfolio Hub is a convenient feature that displays a list of all your portfolios in one place. It provides you with a comprehensive overview of the value, returns, and analysis of all your portfolios. This feature is an extension of the Dashboard widget and allows you to have a closer look at all your portfolios as an aggregate.
You can easily access all the portfolios that you own by navigating through the drop-down menu. This way, you can also view each portfolio in detail.
Portfolio Snowflake
The Portfolio Snowflake provides a comprehensive overview of your entire investment portfolio, offering a consolidated snapshot of the combined fundamental health of the companies within it. It is a visual representation derived from aggregating the individual Snowflakes of the companies in your portfolio.
Risks & Rewards
Under the portfolio snowflake, you can find the Risk (!) & Rewards (★)⋆section which displays the total number of risks and rewards associated with all the holdings in the portfolio. Our system performs risk checks on every company, and if any checks fail, we flag them as potential investment risks. These are then collectively presented in your portfolio to give you a quick overview.
Performance VS Market
The Performance vs. Market chart provides a comparison between the performance of your current holdings and the broader market over a specific period of time. You can view the specific dates by navigating through the chart. This metric is useful in understanding how well the companies you hold have performed in comparison to the overall market.
Note: There are two types of portfolios: Holdings and Transactions Portfolio. You can find more details about each portfolio here. The summary table below provides a quick comparison of the calculations, which is further explained in the following sections.
How to: Calculating Portfolio Performance Metrics
Summary Table:
| Terminology | Type | |
|---|---|---|
| Transactions Portfolio | Holdings Portfolio | |
| Value | Current share price x No. of shares | Current share price x No. of shares |
| Cost /Capital Invested | Total Cost Basis – Cost Basis of Shares Sold (FIFO) | Average price × No. of shares |
| Unrealised Returns | Total Market Value - Cost/ Capital Invested | NA |
| Realised Gains/Losses | (Selling Price − Purchase Price) × Shares Sold | NA |
| Dividends | Dividend Payment per Share × Shares Held | NA |
| Estimated Dividends | Annual Dividend Per Share x No. of Shares | Annual Dividend Per Share x No. of Shares |
Illustration and Sample Calculations:
The Value is the current market value of your holdings in your portfolio.
Formula: Value = Current share price x No. of shares
Illustration and Calculations:
Total Value = Current share price x No. of shares
= 0.57 x US$637.69
= US$364
A. Transactions Portfolio
This portfolio tracks individual transactions and adjusts for shares sold based on the FIFO (First-In-First-Out) method. Unlike the Holdings portfolio, this considers each trade separately and dynamically updates the cost basis over time.
Formula: Cost/ Capital Invested = Total Cost Basis – Cost Basis of Shares Sold (FIFO)
Where:
Total Cost Basis = Total Purchase Cost
Cost Basis of Shares Sold (FIFO) = Sum of the cost basis of the oldest shares that were sold.
Illustration and Calculations:
Cost / Capital Invested = Total Cost Basis – Cost Basis of Shares Sold (FIFO)
= US$497 - US$417.54
= US$79.46
Total Cost Basis = Sum of all purchase costs.
= US$417.54 + US$79.46
= US$497
Cost Basis of Shares Sold (FIFO) = Sum of the cost basis of the oldest shares that were sold.
- Buy 3 shares at US$139.18 each → Total Cost Basis = US$417.54
- Buy 0.57 shares at US$139.18 each → Total Cost Basis = US$79.46
- Sell 3 shares → FIFO applies, meaning the first 3 shares sold are from the first purchase at $139.18 each.
- Cost Basis of Shares Sold = 3 × $139.18 = US$417.54
B. Holdings Portfolio
The cost basis is calculated using the average cost method, which means the purchase prices of all shares are averaged out. It’s simple and easy to track since it treats all shares as having the same cost.
Formula: Cost / Capital Invested = Average Price x No. of shares
Where:
Average Price = (Total Purchase Cost) ÷ (Total Shares Held)
Illustration and Calculations:
Cost / Capital Invested = average price x no. of shares
= US$182.25. x 8
= US$1,458
Average Price = (Total Purchase Cost) ÷ (Total Shares Held)
= (US$900 + US$558) ÷ (5 + 3)
= US$1,458 ÷ 8
= US$182.25
a. Holdings
Unrealised gains and losses are calculated by comparing the total market value of holdings with the total cost basis using the average cost method.
Formula: Unrealised Return = Total Market Value - Cost/ Capital Invested
Illustration and Calculations:
Unrealised Return = Total Market Value - Cost/ Capital Invested
= (US$80 x 150) - (US$53 x 150)
= US$12,000 - US$7,950
= US$4,000
a. TransactionsUnrealised gains and losses are calculated based on individual purchase prices instead of an average.
Illustration and Calculations:
Total Unrealised Gains = U$1,500 + US$1,000 + US$500
= US$3,000
Realised gains and losses depend on which shares are sold first using the FIFO Method.
Formula: Realised Gain/Loss = (Selling Price − Purchase Price) × Shares Sold
Note: Only available in the Transactions Portfolio as the Holdings Portfolio does not track individual transactions.
Illustration and Calculations:
Realized Gain/Loss = US$1,250 + US$150
= US$1,400
Dividends are the income earned from dividend payouts. Only shares held before the ex-dividend date qualify for dividends.
Formula: Dividends = Dividend Payment per Share × Shares Held
Note: The Holdings Portfolio does not track dividends, as it only considers total holdings without transaction-level details.
Illustration and Calculations:
In the example above, the 3.28 shares that were purchased and held past the ex-dividend date qualify for dividends. After selling 2 shares, you are left with 1.28 shares that remain eligible for dividends: (3 - 2) + 0.28 = 1.28 shares. The total dividends received for NYSE: EL amount to $9.96.
Estimated dividends provide an overview of the potential yearly income from their portfolio based on dividend payments from the underlying stocks. This estimation helps investors gauge the return from dividends relative to their total investment.
Estimated Dividend Yield
The estimated dividend yield represents the average dividend yield expected from the portfolio. It estimates the annual income generated by dividends relative to the portfolio’s total value.
Formula: Portfolio Dividend Yield = Total of (Shares × Annualised Dividend per Share) ÷ Total of (Shares × Current Share Price)
How to calculate the annual dividend payments of each holding in the portfolio?
The "Annual Dividend" refers to the annualised value of dividends declared by the company. The annual dividend data for each stock can be found in the Dividend Analysis section of the company’s financial reports. Click here to learn more about annualised dividends and how it may differ from the actual dividend payment of the company.
Formula: Annual Dividend Payment = Annual Dividend Per Share x No. of Shares
Illustration and Calculations:
The only dividend-paying stock in this portfolio is EL (Estée Lauder) with a DPS of US$1.40 per share. The investor holds 1.28096118 shares of EL.
Annual Dividend Payment = Annual Dividend Per Share x No. of Shares
= US$1.40 × 1.28096118
= US$1.79
Portfolio Dividend Yield = Total of (Shares × Annualised Dividend per Share) ÷ Total of (Shares × Current Share Price)
= 1.79 ÷ 9,243.51
= 0.000194 or 0.02%
Other Important Calculations and Adjustments
If your portfolio’s base currency is different from the currency of your holdings, all calculations must be done in the same currency.
What to Do:Convert all stock prices and financial metrics into the portfolio’s base currency before running calculations.
Funds or ETFs are included in portfolio analysis, but only when data is available.
Key Considerations:- For example, if an ETF or fund has no earnings per share (EPS) data, it will not be included in calculations that require EPS (e.g., PE Ratio, EPS Growth).
- These holdings will still be counted in the total portfolio value and other general calculations.
Stock splits are automatically recognized and adjusted in the New Transactions Portfolio
What to Do:Enter pre-split or original data correctly to ensure accurate calculations.
Portfolio Analysis
The Portfolio Analysis tab is composed of two sub-sections, the Key Metrics & Benchmarks then the Portfolio Diversification.
Note: If your portfolio exceeds your subscription plan's limits, you'll face restrictions on excess holdings. These holdings won't be included in your portfolio's overall value, returns, or analytical insights. Click here for more information.
Key Analysis Metrics & Benchmarks
This sub-section of the portfolio analysis shows the weighted version of the 5 key analysis sections that we are also reflecting in the Snowflake - namely, the Valuation, Future, Past Performance, Financial Health, and Dividends.
Fair Value
Determines the intrinsic value of your portfolio using the Discounted Cash Flow (DCF) method, which forecasts future cash flows of each stock. Please refer here to learn more about the Discounted Cash Flow model.
Calculations:Portfolio Price = Sum of (No. of Shares × Current Share Price)
Portfolio Fair Value = Sum of (No. of Shares × Fair Value
Price-to-Earnings (PE) Ratio
The Portfolio Price-to-Earnings (PE) Ratio measures how much investors are willing to pay for each dollar of earnings in the portfolio. Useful for mature, profitable companies.
Calculations:PE Ratio = Total (No. of Shares × Current Share Price) ÷ Total (No. of Shares × Earnings Per Share)
Price-to-Sales (PS) Ratio
The Portfolio Price-to-Sales (PS) Ratio evaluates the portfolio's valuation based on revenue instead of earnings. Useful for growth companies or unprofitable stocks.
Calculations:PS Ratio = Total (No. of Shares × Current Share Price) ÷ Total (No. of Shares × Revenue Per Share)
Note: Holdings with negative revenues are excluded
Price-to-Expected Growth (PEG) Ratio
The Portfolio Price-to-Expected Growth (PEG) Ratio adjusts the PE Ratio by considering future earnings growth, making it valuable for growth-focused investors.
Calculations:PEG Ratio = Weighted Average of Individual Stock PEG Ratios
Note: Holdings with negative revenues are excluded
Price-to-Book (PB) Ratio
The Portfolio Price-to-Book (PB) Ratio compares the portfolio’s market value to its book value. This metric is useful for portfolios with capital-intensive companies (e.g., banks, REITs, manufacturers). Lower PB Ratio = Possible undervaluation, Higher PB Ratio = Potential overvaluation.
Calculations:PB Ratio = Total (No. of Shares × Current Share Price) ÷ Total (No. of Shares × Book Value Per Share)
Annual Earnings Growth vs Market
The Annual Earnings Growth vs. Market bar chart compares the portfolio’s annual earnings growth rate to the market over 3-year periods. It shows if your portfolio is outperforming, matching, or lagging behind the market.
Calculations:Past Average = Weighted Average of Annual Past Earnings Growth %
Future Average = Weighted Average of Annual Projected Earnings Growth %
Annual Revenue Growth vs Market
The Annual Revenue Growth vs Market bar chart measures revenue growth in your portfolio relative to the broader market. It helps assess whether your investments are growing faster or slower than the market.
Calculations:Past Average = Weighted Average of Annual Past Revenue Growth %
Future Average = Weighted Average of Annual Projected Revenue Growth %
EPS Growth vs Market
The EPS Growth vs Market bar chart tracks how your portfolio’s EPS growth compares to the market over 3-year periods.
Calculations:Past Average = Weighted Average of Annual Past EPS Growth %
Future Average = Weighted Average of Annual Projected EPS Growth %
Return on Equity (ROE)
The Return on Equity (ROE) chart measures how efficiently companies in the portfolio generate profits from shareholders' equity. Higher ROE = More efficient use of equity
Calculations:ROE = Total (No. of Shares × Earnings Per Share) ÷ Total (No. of Shares × Equity Per Share)
Return on Capital Employed (ROCE)
The Return on Capital Employed (ROCE) chart evaluates how well companies use invested capital to generate profits. A higher ROCE means more effective capital usage.
Calculations:ROCE = Total (No. of Shares × EBIT Per Share) ÷ Total (No. of Shares × Capital Employed Per Share)
Return on Assets (ROA)
The Return on Assets (ROA) chart assesses how efficiently a company’s assets generate earnings. Higher ROA = More efficient asset utilization.
Calculations:ROA = Total (No. of Shares × (Earnings Per Share - Net Interest Expense Per Share)) ÷ Total (No. of Shares × Total Assets Per Share)
Net Debt to Equity vs Market
The Net Debt to Equity vs Market chart compares the portfolio’s leverage (net debt) to shareholders’ equity, providing insight into financial risk. Higher ratio = More leverage and risk; Lower ratio = More financial stability.
Calculations:Net Debt to Equity = Total of (no. of shares x Debt per share) ÷ Total of (no. of shares x Equity per share)
Portfolio Dividend Yield
The Dividend Yield chart measures the expected annual income from dividends relative to the portfolio’s total value. Higher yield means greater dividend income.
Calculations:Dividend Yield = Total (No. of Shares × Dividend Per Share) ÷ Total (No. of Shares × Current Share
Dividend Growth Rate
The Dividend Growth Rate chart tracks how fast dividends have grown over time compared to the market. Higher growth indicates increasing payouts over time.
Calculations:Dividend Growth Rate = Weighted Average of All Dividend Growth Rates
Payout Ratio
The Payout Ratio chart measures the percentage of earnings paid out as dividends, indicating how much profit is returned to investors. Higher ratio = More focus on income; Lower ratio = More reinvestment in business growth
Calculations:Payout Ratio = Total (No. of Shares × Dividend Per Share) ÷ Total (No. of Shares × Earnings Per Share)
Note: Stocks that don’t pay dividends are excluded from this calculation.
Diversification
Diversification is essential for managing risk and optimizing returns by spreading investments across different industries, holdings, and geographical regions. This section helps assess whether your portfolio is well-balanced or overly concentrated in specific areas.
The Diversification across Industries chart shows the breakdown of your portfolio by sector and industry, helping you identify industry concentrations and inform diversification strategies.
Why It Matters:- Reduces risk by avoiding overexposure to a single sector.
- Ensures a balanced portfolio, especially during market fluctuations
- Helps align investments with economic trends and sector performance.
The Diversification Across Holdings chart displays the proportional weight of each holding in your portfolio. It helps you determine the balance of your investments, identify major assets, and guide effective portfolio rebalancing.
Why It Matters:- Helps identify overconcentrated positions that may increase risk.
- Provides insights into whether your portfolio is balanced or dominated by a few major stocks.
- Assists in portfolio rebalancing strategies to maintain desired asset allocation.
The Geographic Exposure chart shows how your portfolio spans globally with this geographical revenue breakdown. This chart is key for assessing regional market exposure, helping in making informed decisions for a more resilient and diversified investment strategy.
Why It Matters:- Reduces risk tied to a single economy (e.g., U.S. market downturn).
- Takes advantage of global growth opportunities in emerging markets.
- Helps align investments with regional economic trends and geopolitical stability.
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