ACE Dashboards
Each month, the portfolio manager receives a customisable Dashboard summarising ACE indicators across his investment universe: sectors, industries, and geographic areas (currently US, Eurozone, Japan).
Main Dashboard Contents
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Cost of Equity: the intrinsic profitability of equities — calculable and reliable — both as a current reading and as a 10-year historical average, with mini-charts showing the last decade.
See illustration below. -
EV-to-Profit ratio: the valuation indicator which is consistent with the Cost of Equity
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Composite scores: overall assessment combining profitability, valuation level, and discretionary criteria
These indicators help the portfolio manager to make his own allocation decisions with full autonomy. PRODIG does not provide investment advice but supplies an analytical infrastructure.
What do these indicators reveal in practice? The Eurozone vs US example below shows how the Cost of Equity reframes a debate that PE ratios cannot settle.
Pricing
Bespoke subscription, approximately €1,000 per month — depending on scope and customisation options (universe coverage, scoring criteria, update frequency).
Dashboard Customisation
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Bespoke universe: selection of sectors and industries relevant to the portfolio manager’s activity (S&P 500, EuroStoxx 300, Topix)
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Customisable scoring: adjustment of rating criteria according to investment priorities
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Frequency: regular updates to track market developments
Illustration: Eurozone vs US equities ex Magnificent 7
By removing the Tech giants known as the Magnificent 7 (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, Tesla), the US equity universe becomes more comparable to the Eurozone universe.
Eurozone equities have delivered a Total Return of 10.1% per year on average over the past decade, 2.9% below their US counterparts (excluding the Magnificent 7).
Most commentators attribute this performance gap to a higher increase of the PE metric, which is shown on the mini graph below.
ACE gives different answers:
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The Cost of Equity shows that ‘ex-Mag7’ US equities intrinsically yield of 15.1% per year, which is 2.5% higher than that of Eurozone equities.
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For both areas the annualized Total Return is around 2 points below the intrinsic profitability (15.1% – 13% and 12.6%-10.1%). This implies that Speculative Return is negative by around 2 points. When using EV-to-profit and well observing its effect stock by stock, the US overperformance is not the effect of the changes of valuation.
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By the way, it should be noted that following the increase of a ratio like PE or EV-to-Profit can be misleading, as the average effect of moving ratios on each stock can diverge from the variation of the overall portfolio ratio.
A greater valuation premium for US equities is not unreasonable, reflecting the structural profitability gap.
This example illustrates how the Cost of Equity can enrich our understanding of equity markets and reframe the debate.
« Are equities actually expensive? » should be preceded by « How much do they yield? ».
Beyond the Dashboards
For clients who want to go further — integrating ACE data into their own systems or building a deeper understanding of the methodology — PRODIG offers:
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Data feeds: access to ACE indicators as a weekly data stream for integration into existing systems
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AceLab: an API that gives access to ACE analyses with their inputs and intermediate values
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Advisory & training: dedicated sessions to fully master ACE indicators and their use in allocation processes
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Technical integration: algorithmic and mathematical support to embed ACE calculations into existing infrastructure
Who is PRODIG for?
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Portfolio managers and asset allocation advisors
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Wealth management advisors
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Family offices
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Asset owners and institutional investors
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Private banks
If you manage equities and want a rigorous, daily analytical framework — one that tells you what equities yield today — ACE Dashboards are built for you.