The single number this site uses to rank companies, and what actually goes into it.
The Health Score is a percentile-based blend of value and quality factors: earnings yield, book yield, sales yield (all inverse valuation ratios — higher is cheaper), return on equity, operating margin, and (inverse) debt ratio. Each company is ranked against the rest of the current universe on each factor, then the percentiles are combined into one 0-100 score.
A raw P/E of 15 means something different in different market conditions and industries; where that 15 RANKS relative to everything else in the universe right now is more stable and comparable across companies than the raw number alone.
The Valuation, Profitability, Safety, and Growth star ratings on each stock page show the same underlying percentiles broken out individually — useful when a company is strong on one dimension and weak on another (e.g., excellent profitability but poor valuation), which the single overall score alone can hide.
The score has no opinion on price momentum, news, or macro conditions — it's a snapshot of value and quality based on the latest filed financials and the current share price, nothing else. It is not a price target, and a high score is not a buy recommendation.
What is the P/E ratio? What is ROE (Return on Equity)? What is CAGR, and how should you read one from a backtest?
Not investment advice. ← All investing terms · Screen stocks yourself →