QuantScore AIQuantScore AI

Methodology

How the Quant Score works

QuantScore is a transparent, rules-based model. Every input is a reported or market figure; each is mapped linearly between a “poor” value (0 points) and an “excellent” value (10 points). There is no hidden judgement and no prediction of future prices.

The overall score

  • Five pillars — Price Momentum, Valuation, Financial Strength, Growth and Analyst View — are each the average of their available factors (0–10).
  • The overall score is the average of the pillars that could be scored, times 10, rounded to a 0–100 scale.
  • Missing data is left out of an average, never counted as zero. If fewer than three areas can be scored we say so instead of showing a confident number.
  • Bands: 75+ Strong · 60–74 Good · 45–59 Fair · 30–44 Weak · below 30 Poor. Bands describe the profile today; they are not buy or sell signals.
  • Business Quality and Risk Profile are supporting dimensions shown alongside the score. They are not part of the composite.

Price Momentum (Technical) In overall score

  • Price vs. 50/200-day moving averages (0-3 points)
  • RSI(14): 45-65 scores best
  • MACD histogram positive
  • Consensus of 10 technical signals

Valuation In overall score

  • P/E: 60x → 0, 12x → 10
  • PEG: 3 → 0, 0.8 → 10
  • Price/FCF: 60x → 0, 12x → 10
  • EV/EBITDA: 40x → 0, 8x → 10
  • DCF model upside: −40% → 0, +30% → 10

Financial Strength (Health) In overall score

  • Piotroski F-Score: 2 → 0, 8 → 10
  • Altman Z-Score: 1.8 → 0, 6 → 10
  • Debt/Equity: 2 → 0, 0.1 → 10
  • Current ratio: 0.8 → 0, 2.5 → 10
  • Interest coverage: 2x → 0, 20x → 10

Growth In overall score

  • Revenue growth (FY): −5% → 0, 40% → 10
  • Net income growth (FY): −10% → 0, 50% → 10
  • 3Y revenue CAGR: 0% → 0, 30% → 10
  • Forward revenue growth: 0% → 0, 30% → 10
  • Gross margin: 20% → 0, 70% → 10

Analyst View (Sentiment) In overall score

  • Share of buy ratings: 30% → 0, 90% → 10
  • Consensus target upside: −10% → 0, +40% → 10
  • 90-day upgrades vs. downgrades

Business Quality (supporting) Supporting

  • ROE: 5% → 0, 30% → 10
  • ROIC: 4% → 0, 25% → 10
  • Operating margin: 5% → 0, 35% → 10
  • Net margin: 2% → 0, 25% → 10
  • FCF / operating cash flow: 30% → 0, 90% → 10

Risk Profile (supporting, 10 = lowest risk) Supporting

  • Beta: 2.0 → 0, 0.6 → 10
  • 1Y volatility: 60% → 0, 18% → 10
  • Largest 1Y drawdown: −50% → 0, −8% → 10
  • Net debt/EBITDA: 4x → 0, net cash → 10

Data, freshness and AI-written text

  • Market data and fundamentals come from Financial Modeling Prep. Quotes are delayed or end-of-day — never real-time — and each page shows when its data was stored.
  • Scores are recomputed daily and a snapshot is stored, so you can see how a score has changed.
  • Summaries, strengths, risks and thesis points marked “Model-generated” are written by rules from the scored factors; each cites the metric behind it.
  • Indian (NSE/BSE) listings: only company profiles are available on our data plan, so they are not scored.