Plain-English definitions of the scores and terms used across the app. Everything here is educational — scores are model outputs, not investment advice.
- Composite Score
- The headline 0–100 blend of all four engines.
- A 0–100 score that blends the four engines — Valuation, Quality, Deep Value and Catalyst — using weights that shift with valuation confidence. Safety caps can pull it down when a serious risk fires. It is an analytical score for study, not a buy/sell rating.
- Value Score (Valuation Engine)
- How the price compares to estimated fair value.
- Estimates an intrinsic value range using DCF (future cash flows), relative PE/PB vs sector peers, and the Graham Number. A higher score means the price sits further below the model's estimated fair value. It is a model output, not a price target.
- Margin of Safety (MoS%)
- How far price is below estimated fair value.
- The gap between the current price and the model's mid fair-value estimate, as a percentage. Positive = trading below the estimate; negative = trading above it. A bigger margin is the cushion value investors look for — but the estimate itself can be wrong.
- Quality Score
- Business quality from the financials.
- A 0–100 read on business quality built from four parts: growth, profitability (ROE/ROCE, margins), balance-sheet stability, and valuation reasonableness. Shown with a letter grade (A+ to F).
- Deep Value Engine (DVE)
- Statistically cheap + likely to survive.
- A 0–100 score measuring how statistically inexpensive a stock looks alongside its odds of financial survival. Built from Cheapness (0–40, trading below its own history and sector), Survivability (0–30, debt/coverage/cash flow), Normalized Earnings (0–20, priced low vs normal earnings power) and Catalyst (0–10).
- Catalyst Engine
- The 'why now' — recent corporate signals.
- A 0–100 score fusing five signals: promoter pledge, insider trades, dated corporate events, concall (earnings-call) sentiment, and mutual-fund churn. It answers 'why now', not just 'what'. With fewer than 3 of 5 layers of data it is marked Insufficient Data and treated as neutral.
- Distress Override
- A safety cap for financial distress.
- A cap that pulls the composite down to 25 when the survivability check flags financial distress (e.g. weak interest coverage, very high leverage, or sustained negative operating cash flow). It stops a 'cheap' stock from scoring well when its survival is in question.
- Governance Red Flag
- Pledge spike or insider selling cap.
- Fires on a sharp rise in pledged promoter shares or a cluster of insider selling. It caps the catalyst score at 35 and the composite at 45, reflecting heightened governance/forced-selling risk.
- Value-Trap Radar
- Looks cheap but may keep falling.
- A risk lens combining smart-money distribution, price/market-structure weakness, forward-earnings risk and accounting quality. When the risk is High or Elevated it caps the composite — flagging stocks that look cheap but may be value traps.
- Confidence
- How much to trust the valuation.
- High / Medium / Low confidence reflects how well the valuation anchors agree and how stable the history is. It changes how much weight the Valuation engine carries in the composite.
- Risk Tier (DVE)
- Deep-value risk classification.
- A label such as Strong Deep Value, Moderate Deep Value, Weak Candidate, High Risk or Speculative Distress, derived from the distress flag, survivability and final DVE score.