Frequently Asked Questions
Why does Vuru only partially analyze financial companies?
Vuru provides a partial analysis of investment banks and other financial companies due to the opaque nature of their financial statements. The numbers they report often don't show the whole picture and make them difficult to evaluate.
Many of the metrics Vuru uses to evaluate other companies do not apply to financial institutions. The metrics that Vuru focuses on for financial institutions are: Book Price, Retained Earnings Growth, Dividend History, and Stock Buybacks.
While Vuru provides this analysis, we want to ensure that investors are fully aware of the risks associated with investing in financial companies and institutions. In fact, we wrote a blog post about why the quality of these companies as investments can be difficult to discern. You can read it here.