If i am not wrong, various screens which use growth ratios are affected by recency bias, if a company has done exceptionally well QoQ or YoY.
For example:
Company A does average growth ratios and suddenly the profits and sales jump. Now this will affect a number of average growth based screens where 3/5/7/10 years percentages will also increase, giving a false overall picture.
How to counter this when writing screens?
Thanks
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