For NAIC/SSG Investors

# For NAIC/SSG Investors

Manifest extends NAIC investment club methodology with automated analysis and refined forecasting approaches.

## Key Points
- **Same foundation**: Growth analysis, profitability focus, P/E forecasting
- **Key difference**: Sales growth + margins vs. EPS growth projections
- **Quality Rating**: Automates the "ugly SSG" screening process
- **Realistic P/Es**: Uses average multiples instead of optimistic high-end forecasts

## The Basics

If you're familiar with Stock Selection Guides (SSGs), you already understand Manifest's core philosophy. Both methods emphasize understanding business fundamentals, projecting growth, and making informed P/E assumptions.

The main difference lies in approach: NAIC focuses on earnings per share (EPS) growth projections, while Manifest starts with sales growth and profit margin expectations. This sales-first approach often provides more reliable forecasts since revenue trends are typically more predictable than earnings fluctuations.

Manifest also uses realistic P/E assumptions rather than optimistic ones. Where SSG methodology might use a high P/E for upside scenarios, Manifest projects what the stock will likely trade at on average over the next five years.

## Key Differences

| NAIC/SSG Method | Manifest Method |
|-----------------|------------------|
| EPS growth projections | Sales growth + margin analysis |
| Optimistic P/E forecasts | Realistic average P/E forecasts |
| Pre-tax profit margins | After-tax (net) profit margins |
| Manual "ugly SSG" screening | Automated Quality Rating (0-100) |
| Visual trend analysis | Quantified financial strength metrics |

## Converting Your P/E Approach

If you typically project P/Es using SSG's 4A/4B method, here's how to align with Manifest:

1. **Start with your projected average P/E** (what you think is reasonable)
2. **Calculate the spread**: Divide average P/E by 3
3. **Set your range**: High P/E = Average + Spread, Low P/E = Average - Spread

**Example**: For an average P/E of 24x
- Spread = 24 ÷ 3 = 8
- High P/E = 24 + 8 = 32x
- Low P/E = 24 - 8 = 16x

## On the Platform

When analyzing stocks, you'll find familiar concepts with enhanced automation:

- **Quality Rating** handles initial screening (look for 65+ ratings)
- **Growth projections** appear in the forecast section with sales and margin breakdowns
- **PAR calculations** show expected returns using your P/E assumptions
- **Historical analysis** provides the same trend context as SSG charts

Your PAR will match traditional SSG calculations when your high and low P/E estimates average to Manifest's projected P/E.

## Next Steps

- Learn about [Quality Ratings](/guide/core-concepts/quality-rating) for automated screening
- Understand [PAR calculations](/guide/core-concepts/par) and return projections
- Explore [Sweet Spot investing](/guide/core-concepts/sweet-spot) for optimal entry points
- Set up your first [Dashboard](/guide/dashboards/creating-dashboards) to track holdings