Company Rating Calculations
1. Assumptions
DCF: [ 0.3, 0.05, -0.1, -0.3 ]
ROE: [ 0.3, 0.05, -0.1, -0.3 ]
ROA: [ 0.3, 0.05, -0.1, -0.3 ]
Debt to equity ratio: [ 2, 0.5, -0.5, -3 ]
Price to earnings ratio: [ 8, 0.5, -0.5, -3 ]
Price to book ratio: [ 1, 0.5, -0.5, -2 ]
Total score: [ 25, 20, 15, 10 ]
2. Individual Calculations
Each number in brackets is a boundary of the ranges used to determine the score and the recommendation. The first number is the best and the last number is the worst.
Detailed breakdown of the ranges:
If the value is higher than the first number in brackets, the score is 5 and the recommendation is "Strong Buy".
If the value is between the second and the first number, the score is 4 and the recommendation is "Buy".
If the value is between the third and the second number, the score is 3 and the recommendation is "Neutral".
If the value is between the fourth and the third number, the score is 2 and the recommendation is "Sell".
If the value is lower than the fourth number, the score is 1 and the recommendation is "Strong Sell".
3. Main Rating Calculations
To calculate the main rating of a stock, we add up the scores of the individual values. The "ratingScore" and "ratingRecommendation" fields follow the conditions above. The only difference is the "rating" field.
The conditions for "rating" are:
If the score is higher than 30, the rating is "S+".
If the score is between 28 and 30, the rating is "S".
If the score is between 26 and 28, the rating is "S-".
If the score is between 24 and 26, the rating is "A+".
If the score is between 22 and 24, the rating is "A".
If the score is between 20 and 22, the rating is "A-".
If the score is between 18 and 20, the rating is "B+".
If the score is between 16 and 18, the rating is "B".
If the score is between 14 and 16, the rating is "B-".
If the score is between 12 and 14, the rating is "C+".
If the score is between 10 and 12, the rating is "C".
If the score is between 8 and 10, the rating is "C-".
If the score is between 6 and 8, the rating is "D+".
If the score is between 4 and 6, the rating is "D".
If the score is between 2 and 4, the rating is "D-".