How is the 0-100 quality score calculated?
Every company starts at a base score and earns or loses points for profitability, margins, cash conversion and balance-sheet strength — high ROE and low debt add, leverage and deteriorating returns subtract.
The quality score is a transparent points system, not a black box. From a base level, a company earns points for demonstrated strength:
• Return on equity above 25% — strong addition • Operating margin above 30% — addition • Free cash flow exceeding reported earnings — addition (earnings are real cash) • Debt-to-equity below 0.3 — addition
And loses points for weakness: • Debt-to-equity above 3 — heavy deduction • Negative shareholder equity — heavy deduction • Declining return on equity over recent years — graduated deduction
The result maps to 0–100. Picks surfaces require at least 65 — a deliberately high bar, which is why the "best stocks" list is usually short. The exact point values are published on the methodology page.
Source: Intrinsic Investor (https://www.intrinsic-investor.com)
This answer is for educational purposes only, not investment advice.