Four pillars — Value, GARP, Quality, Safety — each worth 25 points. Built on the Magic Formula's logic (cheap + good businesses), extended with PEG for growth and an explicit balance-sheet check. Fully automatic: every input loads from market data — no manual judgment calls in the score.
| Pillar | Rule |
|---|---|
| VALUE /25 | Forward P/E ÷ sector avg: <0.6× → 25 · <0.8× → 19 · <1.0× → 13 · <1.3× → 7 · else 0 |
| GARP /25 | PEG = Forward P/E ÷ N-year EPS CAGR % (you pick 1/3/5Y, default 3Y — values auto-loaded): <1.0 → 25 · <1.5 → 19 · <2.0 → 12 · <3.0 → 5 · else 0. CAGR = (Forward EPS ÷ annual EPS N yrs ago)1/N − 1. No TTM profit or non-positive base-year EPS → 0. 5Y needs 6+ years of annual EPS history (long-history source enabled). |
| QUALITY /25 | ROE: 20%+ → 10 · 15%+ → 8 · 10%+ → 5 · 5%+ → 2 · else 0; earnings momentum up to 5 (Forward EPS > TTM EPS > 0 → 5); shareholder return up to 10 — split-adjusted share-count change over your 1/3/5Y window: −5% or less → 10 · ≤0% → 7 · ≤+5% → 3 · else 0. Buybacks score, dilution doesn't. |
| SAFETY /25 | Debt/Equity (auto): <0.2× → 10 · <0.5× → 7 · <1.0× → 4 · <2.0× → 1 · else 0 (negative equity → 0); forward revenue growth (auto): >20% → 5 · 10%+ → 4 · 5%+ → 2 · >0% → 1 · else 0; insider ownership (auto, Yahoo): 15%+ → 10 · 8%+ → 7 · 3%+ → 4 · 1%+ → 2 · else 0. Skin in the game. |
| Margin of safety (display only) | Earnings-based: fair value = Forward EPS × N-year CAGR% (i.e. PEG 1.0); margin = (fair − price) ÷ fair. Follows your 1/3/5Y window, fully automatic. Liquidation (reference): NCAV/share = (current assets − total liabilities) ÷ shares outstanding — shown for reference, never scored. |
Verdict: 80+ Strong candidate · 60–79 Watchlist · 40–59 On hold · below 40 Reject. Two or more trap checks → On hold regardless of score. Not investment advice — a screening aid.