Each metric is rated 1–5 stars relative to typical ranges. Ratings help identify whether a metric is a strength or a concern — always read them in context.

Business Quality Score (X/5)

Average of 6 profitability and efficiency metrics — measures how good the underlying business is, independent of price.

ROE: ★★★★★ >25% · ★★★★ 15–25% · ★★★ 8–15% · ★★ 3–8% · ★ <3%. High ROE with low D/E is ideal.

Net Margin: ★★★★★ >20% · ★★★★ 12–20% · ★★★ 6–12% · ★★ 2–6% · ★ <2%.

Operating Margin: ★★★★★ >20% · ★★★★ 12–20% · ★★★ 6–12% · ★★ 2–6% · ★ <2%.

ROA: ★★★★★ >15% · ★★★★ 8–15% · ★★★ 4–8% · ★★ 1–4% · ★ <1%.

D/E Ratio: ★★★★★ <0.3 · ★★★★ 0.3–0.8 · ★★★ 0.8–1.5 · ★★ 1.5–3 · ★ >3.

Revenue Growth: ★★★★★ >15% · ★★★★ 8–15% · ★★★ 3–8% · ★★ 0–3% · ★ negative.

Only metrics with valid data are included. Score = simple average of available metric scores. Labels: ≥4.5 Excellent · ≥3.5 Good · ≥2.5 Fair · ≥1.5 Weak · <1.5 Poor.

Valuation Score (X/5)

Average of 4 price-to-value ratios computed live from current price — measures how cheap or expensive the stock is right now. Only available metrics are averaged.

P/E Ratio: ★★★★★ <8x · ★★★★ 8–14x · ★★★ 14–20x · ★★ 20–30x · ★ >30x. Skipped when earnings are negative.

P/B Ratio: ★★★★★ <1.5x · ★★★★ 1.5–3x · ★★★ 3–5x · ★★ 5–8x · ★ >8x.

EV/EBITDA: ★★★★★ <6x · ★★★★ 6–10x · ★★★ 10–15x · ★★ 15–22x · ★ >22x.

P/S Ratio: ★★★★★ <1x · ★★★★ 1–2x · ★★★ 2–4x · ★★ 4–7x · ★ >7x. Useful for loss-making companies where P/E is unavailable.

Labels: ≥4.5 Very Cheap · ≥3.5 Cheap · ≥2.5 Fair Value · ≥1.5 Expensive · <1.5 Very Expensive. High score = cheap relative to fundamentals.

Risk Score (X/5) — higher = safer

Average of 4 risk pillars. Answers: how safe is this investment? Financial Services stocks exclude the Leverage pillar as high D/E is structural for banks.

Leverage (D/E): ★★★★★ <0.3 · ★★★★ 0.3–0.8 · ★★★ 0.8–1.5 · ★★ 1.5–3 · ★ >3. High debt amplifies losses in downturns.

Cash Generation (FCF Margin): ★★★★★ >12% · ★★★★ 6–12% · ★★★ 2–6% · ★★ 0–2% · ★ negative. Negative FCF means the company is burning cash.

Earnings Quality: ★★★★★ Positive EPS + growing ≥10% · ★★★★ Positive + stable/growing · ★★★ Positive + declining · ★★ Negative but improving · ★ Negative and worsening.

Market Volatility (Beta): ★★★★★ <0.5 · ★★★★ 0.5–0.8 · ★★★ 0.8–1.2 · ★★ 1.2–1.8 · ★ >1.8. High beta = large swings relative to the market.

Labels: ≥4.5 Very Low · ≥3.5 Low · ≥2.5 Moderate · ≥1.5 Elevated · <1.5 High Risk.

Individual Metric Ratings

P/S Ratio: ★★★★★ <1x · ★★★★ 1–2x · ★★★ 2–4x · ★★ 4–7x · ★ >7x. Lower = cheaper relative to revenue.

FCF Yield: (FCF ÷ Mkt Cap) ★★★★★ >8% · ★★★★ 5–8% · ★★★ 3–5% · ★★ 1–3% · ★ <1%.

Div Yield: ★★★★★ >5% · ★★★★ 3–5% · ★★★ 1.5–3% · ★★ 0.5–1.5% · ★ <0.5%.

Beta (5Y): ★★★★★ <0.5 · ★★★★ 0.5–0.8 · ★★★ 0.8–1.2 · ★★ 1.2–1.8 · ★ >1.8. Lower = less volatile relative to market.

Note: Financial/banking stocks have different margin and D/E norms. High ROE leveraged by debt should be cross-checked with FCF coverage. EPS Growth and Revenue are shown for reference only.