CRITERIA 1-5 |
P/E RATIO The company's P/E is compared to the average for the sector. If it is a match
a score of 3 is granted. If the value is 1-20% below the target, a score
of 4 is granted. A value more than 20% below the target is awarded a 5.
Conversely, if the value is up to 20% above target, a 2 is granted.
If the value is more than 20% above target, a score of 1 is given. |
DEBT/INCOME RATIO The company's cash flow ability to repay debt is analyzed. If the item's target
value is achieved, a score of 3 is granted. If the value is 1-20% below
the target, a score of 4 is granted. A value more than 20% below the
target is awarded a 5. Conversely, if the value is up to 20% above target,
a 2 is granted. If the value is more than 20% above target, a score of
1 is given. |
DEBT/EQUITY RATIO The company's net worth is evaluated. If the item's target value is achieved,
a score of 3 is granted. If the value is 1-20% below the target, a score
of 4 is granted. A value more than 20% below the target is awarded a 5.
Conversely, if the value is up to 20% above target, a 2 is granted.
If the value is more than 20% above target, a score of 1 is given. |
INCREASING INCOME A company's income over the last 5 years is compared to the prior year's income.
A point is granted for every year where the income is greater than the previous
year's. |
EARNINGS A company is awarded a point for every year an earning was reported over the last
5 years. |