How the Ranking Works

The full SectorScout ranking methodology: all 28 fundamental metrics, the weight each one carries, and how a score is built from peer comparison and multi-year growth.

What the score is made of

Four groups account for the whole score: Growth 35.8%, Debt 29%, Profitability 8.9%, Valuation 26.3%. The 28 measures below sit inside those groups; each carries its own weight, which is not published.

Measure Group Scored toward
Book value per share (growth rate too) Valuation Higher is better
Capital expenditure Growth Higher is better
Cash conversion cycle Growth Lower is better
Dividend payout ratio Debt Lower is better
Dividend yield Growth Higher is better
Earnings per share (growth rate too) Valuation Higher is better
EBITDA (growth rate too) Growth Higher is better
EV / EBITDA Debt Lower is better
Free cash flow (growth rate too) Growth Higher is better
Gross profit (growth rate too) Profitability Higher is better
Gross profit margin Profitability Higher is better
Net debt Debt Lower is better
Net income (growth rate too) Growth Higher is better
Net income growth Growth Higher is better
Operating cash flow (growth rate too) Growth Higher is better
Operating profit margin Profitability Higher is better
PEG ratio Valuation Lower is better
Price / book Valuation Lower is better
Price / earnings Valuation Lower is better
Price / sales Valuation Lower is better
Return on assets Profitability Higher is better
Return on equity Profitability Higher is better
Return on invested capital Profitability Higher is better
Revenue (growth rate too) Growth Higher is better
Revenue growth Growth Higher is better
Total assets (growth rate too) Debt Higher is better
Total assets to debt Debt Higher is better
Total debt Debt Lower is better

How a score is built

Each metric is scored against the other companies being compared rather than against a fixed benchmark: the best value in the group scores 1, the worst scores 0, and metrics where less is better are inverted. 9 of the 28 also measure compound annual growth over 5 years where the history supports it (3 to 10 otherwise), scaled by the length of the record, and add it to that metric's score.

There is no fixed maximum and no perfect score: a total is read against the other companies in the same comparison rather than as a percentage of anything. A figure missing from a company's filings contributes nothing rather than being estimated.

A rank is a reading of published fundamentals against a set of peers. It is not a forecast, a price target, or a recommendation to buy or sell anything. SectorScout is a research and education tool.