Best Ratios and Metrics for Analyzing Small-Cap Stocks


Hey everyone,

I've been working in equity analysis for about a year, mainly focusing on mid and large caps, so l'm comfortable with the common metrics for those.

However, I'm struggling when it comes to small-cap stocks, especially when some are unprofitable and don't have consistent revenue history. Looking at insane revenue growth forecasts (like 1000%-2000% over the next year or two feels unrealistic and not very useful for screening.

What ratios or metrics do you all recommend for evaluating small caps? I have access to the Bloomberg Terminal, so if there are any specific tools or strategies I should explore there, l'd really appreciate it. My experience is still fresh, so feel free to correct me if l'm off track.

Thanks!


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