Holding scores
Four 0–100 scores for each holding — valuation, momentum, quality and risk — and their average.
Formula
Each score = mean of its available inputs, each read off a piecewise-linear scale Overall = mean of the available four
Inputs
- Valuation. Forward P/E (5 scores 95, 70 scores 5), trailing P/E, PEG, price/book and the analysts' target upside.
- Momentum. Distance from the 52-week high and from the 52-week low, and today's change.
- Quality. ROIC, ROE, operating margin, FCF margin, revenue growth and Piotroski.
- Risk (higher = safer). Debt/equity, Altman Z and beta, plus realized volatility and maximum drawdown when the holding's price history is long enough.
How to read it
50 is middling on every scale; 70 and above is strong for that dimension. A high risk score means LOW risk.
How to use it
Find the holding dragging a dimension down — the one expensive name in a value portfolio, the one fragile balance sheet. The portfolio's own risk score is these risk scores averaged by position size.
Limitations
Each scale is a fixed set of points chosen for a typical large company, not a comparison with peers. A score averages only the inputs the vendor served.
In Kereon
Portfolio · Holdings. Per holding, from its research data and, for risk, its own price history.
Also called: valuation score, momentum score, quality score, risk score, overall score.