Investing in the stock market is sometimes seen as educated gambling, with highflying brokers risking everything in the pursuit of profit in an industry that easily intimidates those new to investing. However, Australian startup Simply Wall St has taken on the task of simplifying investing for everyone by using its unique “Snowflake” and associated infographic to represent the fundamental aspects of listed companies. While the application is still in beta, the company is launching the Snowflake Widget API for third-party integration.
The API will allow third-party sites to display the Snowflake of any company on Simply Wall St’s database or display a random company that fits specific criteria. Currently, the application offers live stock data on companies listed on the New York Stock Exchange, the Nasdaq, the London Stock Exchange and the Australian Securities Exchange.
The main task of the application is to simplify the financial data on listed companies and present that data as a graphical interpretation that allows for instant understanding of a company’s investment potential. Each company has a unique Snowflake that is generated from 30 financial checks in five core areas:
- Value – Based on future cash flows and price relative to the market
- Future Performance – Expected performance in the next three years
- Past Performance – Historical performance over the last five years
- Health – Financial health and level of debt
- Income – Current dividend yield, its volatility and sustainability
While the app was built with beginners in mind, the Snowflake is also accessible to experienced investors, allowing them to understand a company’s stock data at a glance and see which companies are in line with their own investment criteria. As well as offering stock data, ideas and suggestions, the company offers brokerage and ongoing portfolio management.
Based on the current growth in FinTech, Simply Wall St is well-positioned to open up investing to everyone as it looks to guide users to become long-term investors.