Fin Screener generates an institutional-style fundamental analysis report for each stock. This page explains the methodology behind that report — how the investment score, fair value and quality checks are calculated. The figures shown in any individual report are examples based on data at the time of generation and are for educational purposes only, not investment advice.
Each stock receives a weighted investment score built from five pillars: growth, profitability, financial health, valuation and quality. Growth looks at multi-year revenue and net-income trends (including CAGR). Profitability measures ROE, ROA, ROIC and margins. Financial health checks liquidity (current and quick ratios), leverage (debt/equity) and free cash flow. Valuation compares the price to earnings, book value and operating cash generation. Quality folds in the Piotroski F-Score and Altman Z-Score. The five pillars combine into a single 0–10 figure and a plain-language decision.
Rather than relying on a single model, Fin Screener estimates intrinsic value three ways and averages them. The Conservative P/E method applies a prudent earnings multiple. The Lynch Fair Value method uses Peter Lynch's idea that a fair P/E roughly equals the growth rate (PEG = 1). The Discounted Cash Flow (DCF) method projects future cash flows and discounts them to today. The average of these three gives a reference fair value, from which the report derives upside potential and a margin of safety — the gap between estimated value and current price.
Two well-established screening tools sit alongside the score. The Piotroski F-Score runs nine pass/fail tests on profitability, leverage and operating efficiency, producing a 0–9 result where higher is healthier. The Altman Z-Score combines several financial ratios into a single number that flags bankruptcy risk. Beta is also shown, measuring how the stock tends to move relative to the broader market.
From the average fair value and a margin-of-safety band, the report derives indicative price zones — from a deep-discount accumulation area up to levels that suggest trimming. These are reference zones to frame where the current price sits relative to estimated value, not buy or sell recommendations.
Every fundamental report is educational and analytical only. It is not investment advice, and the specific numbers in any report reflect delayed market data at the moment it was generated. Always do your own research before making any decision.
