A transparent, rule-based framework for evaluating publicly traded companies. Every score in every report is produced by these rules — published openly so you can audit, verify, and challenge our conclusions.
Applying the same valuation framework to a pre-revenue biotech, a hyper-growth SaaS company, and a dividend-paying utility produces meaningless scores. Every company is first auto-classified into one of four stages, and only then scored.
Revenue under $5M TTM with negative gross margins. Scored on TAM, IP moat, cash runway (2.5× weight), team quality, and partnerships. Traditional valuation multiples are excluded as structurally inapplicable.
Meaningful revenue but unprofitable. Scored on EV/Revenue, revenue growth rate (2× weight), contracted backlog (2×), cash runway, gross margin, and net revenue retention.
The traditional framework applies. P/E, PEG, FCF yield, ROE, ROA, debt coverage, Altman Z-score, and net margin all contribute to fundamental scoring.
Weighted heavily on Altman Z-score (3×), debt-to-equity trend, interest coverage (2×), cash burn, and specific recovery catalysts.
The composite score (1–100) is the weighted sum of four pillar scores, each independently calculated from 0 to 100.
The largest pillar because business quality is the primary determinant of long-term returns. Metrics are weighted by stage. Free cash flow yield carries a 1.5× weight in Stage C because it is the most reliable indicator of financial health.
Independent of fundamentals. Considers capital structure, dilution, regulatory exposure, customer concentration, and geopolitical sensitivity. Higher scores mean lower risk.
The chart tells you when. Moving averages (2× weight for SMA-200), RSI, MACD, volume, 52-week position, and relative strength vs. sector and SPX.
Analyst consensus, price target momentum, insider transactions (2× weight — corporate insiders have the best information), institutional flow, short interest, earnings surprise history, and binary catalysts within 90 days.
A compelling narrative cannot override a broken balance sheet. When specific red flags appear, the composite score is capped regardless of how strong other pillars look.
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