JADE Scoring Methodology

How we calculate the ranking and why part of it updates every day.

Contents

  1. How JADE works
  2. 5 scoring pillars
  3. Valuation
  4. Business Quality
  5. Growth
  6. Dividend
  7. Smart Money
  8. Profile weights
  9. How the final score is calculated
  10. Why rankings change daily
  11. A note on data availability
  12. Disclaimer

How JADE works

JADE evaluates companies across five groups of indicators. Each company receives a score of 0 to 100 in each pillar. The final score is a weighted sum of these scores — weights depend on the chosen investment profile.

Some indicators — those tied to the share price — update every day after the market close. Fundamental data (earnings, balance sheet, cash flows) refreshes quarterly when companies report results.

The scoring is fully mechanical and based on publicly available data only. We do not assess management quality, strategy, or qualitative factors such as ESG.

5 scoring pillars

Why five? A single number — like P/E alone — isn't enough. A cheap stock can have poor business quality. A fast-growing company can be destroying capital. A high dividend can be unsustainable.

Valuation

We assess whether a stock is cheap relative to its sector — not in absolute terms. A technology stock at P/E 25 can be a bargain if the whole sector trades at P/E 40. The same number in a different sector might already be expensive.

Each ratio is scored by percentile within the sector — not against fixed thresholds. The lower the valuation relative to sector peers, the higher the Valuation score.

Business Quality

A low valuation alone is not a sufficient reason to invest. ROIC — return on invested capital — is the primary quality metric in JADE. It measures how efficiently a company converts invested capital into operating profit. High ROIC paired with an attractive valuation is a potential opportunity. Low ROIC with a low valuation is often a value trap.

Growth

We care about healthy growth — not just fast growth. A company growing through heavy debt while destroying capital will score lower than one growing organically with a high ROIC. ROIC acts as a quality filter within the Growth dimension.

Dividend

For dividend-paying companies, we assess both yield and sustainability. A high yield that the company cannot sustain does not deserve a high score.

Companies with no dividend and no buybacks receive 0 points in this pillar.

Smart Money

Tracking who is buying a stock provides supplementary signals — not decisive ones. Insiders and activist investors often have deeper knowledge of the company's situation.

Neutral baseline: 50 pts (no signals). Smart Money is a supporting indicator — it should never be the sole reason for an investment decision.

Ranking profile weights

JADE offers three profiles reflecting different investment priorities. Choose the one that matches your approach — the ranking is recalculated using the corresponding weights.

Pillar VALUE QUALITY-GROWTH DIVIDEND
Valuation50%20%20%
Quality20%30%25%
Growth10%35%5%
Dividend8%5%40%
Smart Money12%10%10%
Total100%100%100%

How the final score is calculated

Final Score =
  (Valuation × weight) +
  (Quality × weight) +
  (Growth × weight) +
  (Dividend × weight) +
  (Smart Money × weight)

Example: a company with high quality and strong growth, but priced expensively relative to its sector, may have a lower final score in the VALUE profile. If its share price falls and its valuation ratios approach the sector median, it may climb the ranking at the next market close.

Why rankings change daily

A company's fundamentals — earnings, balance sheet, cash flows — change quarterly. Share prices change every trading day.

When a price falls, valuation ratios (P/E, P/B, P/FCF) decline and the stock becomes relatively cheaper than its sector peers. This automatically pushes its Valuation score higher. After a broad market selloff, fundamentally sound companies can rise in the rankings — and after a price run-up, their relative attractiveness can fade.

A note on data availability

JADE covers four markets: S&P 500 (US), GPW (Poland), SGX (Singapore), and HKEX (Hong Kong). The scope of available data differs across markets due to local regulations and reporting standards. Where a specific metric is unavailable, JADE uses the closest comparable approach within those constraints. The scoring is always mechanical and based on public data only.

Disclaimer

JADE is an educational and informational tool. Rankings and scoring results do not constitute investment advice, financial advice, or any form of investment recommendation. Every investment decision is the sole responsibility of the investor and should be preceded by independent analysis.