The Miller Valuation Ratio, created by James R. Miller of ebankstocks.com., is a proprietary stage two valuation screening tool for use by sophisticated community bank investors. Its purpose is to narrow the search for investment candidates by uniquely combining balance sheet, income statement, and market valuation data into one ratio. The properly directed community bank investor recognizes that he is a small/micro cap value investor. As such one cannot “reach for positions” by over paying for shares. Compliance with a valuation discipline is crucial and the MVR assists that process.