We've spent months refining our own proprietary stock rating system as a tool to help inform investors on how an individual security compares to the rest of the market.
Rating Score Card
We assess each security in 6 categories and rate them with respect to each other. Not all securities will qualify to be rated in every (or any) categories.
Our Growth score is calculated based on a companies Revenue Growth and Earnings per Share (EPS) Growth.
Our Momentum score is calculated based on a securities Relative Strength Indicator (RSI) as well as short-term historical performance metrics.
Rule of 40
Our Rule of 40 score is an interesting metric originally used to calculate the "investability" of SaaS companies. Check out this article for more.
Our Value score we run a calculation by looking at the Price/Sales Ratio (PSR), Price/Book Ratio (P/B), Earnings Yield, and Dividend Yield, to determine how to get the best "bank for your buck".
Our Profitability score uses Profit Margin, Return on Assets, and Return on Equity to calculate a normalized profitability score which is pertinent in managing diversification and risk exposure.
Our Safety score is based off of the a security's Beta to understand volatility and how safe a company may be compared to the market as a whole.
If you have questions about our stock rating system, feel free to reach out to [email protected], we're happy to help!
EEON does not provide guarantees or warranties on the accuracy of our stock scores. This is a best-effort tools that shall not be construed as investing recommendations or advice. Always perform multi-source verification and due diligence before making any investment decisions.