How the Aristockrat Score works
Every stock on Aristockrat gets a score from 0 to 100 that summarises its fundamentals, valuation, price trend and market sentiment. The score is calculated by a rules-based engine from more than 120 indicators and refreshed every trading day. This page explains what goes into it, how it is weighted and where its limits are.
The five categories
Each indicator belongs to one category. Within a category, positive and negative signals offset each other and the net result is scaled to a 0–100 category score, where 50 is neutral. The overall score is a weighted average of the category signals:
| Category | Weight | What it measures |
|---|---|---|
| Quality | 27% | Profitability, balance-sheet strength and earnings quality: return on invested capital (and ROIC minus cost of capital), ROE, ROA, operating, net and free-cash-flow margins, debt to equity, net debt to EBITDA, interest coverage, current and quick ratios, Piotroski F-Score, Altman Z-Score, Beneish M-Score, accruals and free-cash-flow conversion. Banks are judged on bank metrics (CET1, net interest margin, loan-to-deposit ratio, efficiency, credit costs). |
| Growth | 22% | Revenue and earnings growth, multi-year revenue and EPS CAGR, forward EPS growth, free-cash-flow growth and the Rule of 40. |
| Valuation | 18% | P/E and forward P/E (against the sector median), PEG, P/S, P/B, EV/EBITDA, EV/EBIT, EV/FCF, earnings and free-cash-flow yield, shareholder yield, the Graham Number and the Peter Lynch fair value. REITs use P/FFO and P/AFFO instead of P/E. |
| Momentum | 18% | Long-term price trend and risk: position against the 200-day moving average, the 50/200-day cross, 12-1 month momentum, relative strength against the S&P 500, distance from the 52-week high and low, volatility, maximum drawdown and risk-adjusted returns (Sharpe, Sortino, Calmar). Short-term readings (RSI, MACD, money flow, the 20 and 50-day averages) are shown but not scored: entry timing is the job of the swing-trade signal. |
| Sentiment | 15% | Analyst ratings and recent upgrades, earnings beats and surprises, 30-day EPS revisions, insider buying and selling, institutional ownership, short interest and the risk-adjusted upside to the analyst target. |
The percentages are the maximum shares. A category's weight is reduced when only a few of its indicators are available for a stock, so one or two data points cannot carry a full category.
Compared with the sector, not the whole market
A P/E of 30 means something different for a software company than for a utility. Valuation multiples and quality measures such as margins and return on capital are compared with the median of the stock's sector. Banks, insurers, REITs and regulated utilities use adapted indicators, because metrics like free cash flow or debt ratios describe their business model rather than their health. On top of that, each sector's typical score is removed, so a stock is ranked against its own sector and no sector looks better only because its rules are more lenient.
Red flags cap the score
Some warning signs outweigh any number of good ratios: signs of possible earnings manipulation (Beneish M-Score), elevated bankruptcy risk (Altman Z-Score), a company burning through its cash, or returns on capital below the cost of capital. Each confirmed red flag lowers the maximum score the stock can reach, however strong the rest of the data is.
From score to rating
| Score | Rating |
|---|---|
| 73–100 | Strong Buy |
| 66–72 | Buy |
| 48–65 | Hold |
| 30–47 | Sell |
| 0–29 | Strong Sell |
The bands are set so that roughly 8% of stocks rate Strong Buy, 30% Buy or better and 20% Sell or worse. A rating changes only when the score moves at least 2 points past its band, so small daily moves around a boundary do not flip it.
Moat, valuation and risk ratings
Alongside the score, each stock gets three short ratings. The economic moat combines quality (65%) and growth (35%), with bonuses for high returns on capital and margins and caps when returns on capital are weak: Wide (80+), Moderate (60–79), Narrow (40–59) or None. The valuation rating (Undervalued, Fair or Overvalued) compares the price with several fair-value models and sector multiples. The risk rating (Low, Medium or High) adds up price volatility (beta, drawdown, volatility), high leverage and the number of problem areas flagged: solvency, liquidity, cash burn, profitability and accounting.
Data coverage and confidence
Every score carries a confidence level based on how complete the data is. When a stock has too few independent indicators, or data from too few categories, it is marked as having insufficient data and its moat and valuation ratings are withheld rather than guessed.
Data and updates
Prices, financial statements, analyst estimates and ownership data come from public market-data sources and are refreshed every trading day. Coverage includes the S&P 500, Nasdaq 100, FTSE 100, DAX 40, CAC 40, FTSE MIB, IBEX 35, AEX, SMI, OMX Nordic 40, BEL 20 and a watchlist of other large US and European companies.
Limitations
The score is a quantitative summary of published data. It does not know about news, management changes or events that are not yet in the numbers, and data providers can be late or wrong. It is a starting point for your own research, not investment advice.
Explore the scores
See every scored stock on the stocks page, or browse by sector: Real estate, Financials, Information technology, Healthcare, Energy, Utilities, Materials, Communication services, Consumer staples, Consumer discretionary, Industrials. Or by index: S&P 500, Nasdaq 100, FTSE 100, DAX 40, CAC 40, FTSE MIB, IBEX 35, AEX, SMI, OMX Nordic 40, BEL 20.