The scoring model is based on a weighted evaluation of the following key criteria:

• Consistent growth in Earnings Per Share (EPS), indicating durable earning power.
• EPS compound annual growth rate (CAGR) above 10%, showing strong long-term growth.
• Return on Invested Capital (ROIC) above 10%, reflecting efficient capital allocation.
• Gross profit margin above 60%, suggesting a durable competitive advantage.
• Price-to-Free-Cash-Flow (P/FCF) below 15, indicating attractive valuation relative to cash generation.
• Positive Free Cash Flow (FCF), confirming the ability to generate excess cash.
• Low capital expenditure relative to FCF, highlighting scalable business operations.
• Dividend payout ratio below 60%, balancing shareholder return and reinvestment.
• Debt-to-Equity ratio below 2, showing a conservative capital structure.
• Operating margin above 10%, representing operational efficiency.
• Current ratio above 1.5, demonstrating short-term financial health.
• Interest coverage above 3, ensuring sufficient ability to service debt obligations.
• Debt/EBITDA ratio below 3, indicating sustainable leverage.
• Return on tangible assets above 5%, assessing real asset productivity.
• Low proportion of intangibles to total assets (below 20%), favoring asset quality.
• Market price below the Graham Number, a classical fair-value benchmark.
• Intrinsic value (based on Discounted Cash Flow) above the current market price, suggesting undervaluation.