Score calculation method
Specifically explains how each item is calculated based on its criteria.
Financial score
An item that evaluates a company's fundamentals. It consists of valuation indicators (up to 20 points), performance trends (up to 10 points), and dividend yield (up to 10 points).
Valuation indicators (each 0~5 points)
| Indicator | 5 points (highest) | 0 points (lowest) | Criteria |
|---|---|---|---|
| PER | 5~15 times | 0 or below or over 50 times | Lower indicates undervaluation |
| PBR | 0.5~1.5 times | Over 5 times | Lower indicates undervaluation relative to assets |
| ROE | 20% or higher | 0% or lower | Higher indicates better capital efficiency |
| Debt-to-Equity Ratio | 50% or lower | Over 300% | Lower indicates financial stability |
Performance Trend (Maximum 10 points)
Evaluates the improvement of the following 3 items compared to the previous quarter. Each item is scored 0~3 (some 0~4) and summed.
- • Revenue Growth Rate: Trend of revenue increase compared to the same period last year (0~4 points)
- • Operating Profit Growth Rate: Trend of operating profit increase compared to the same period last year (0~3 points)
- • ROE Trend: Improvement of ROE compared to the previous quarter (0~3 points)
News Sentiment Score
AI classifies news articles collected within the last 30 days into positive, neutral, or negative, and calculates a score based on sentiment ratio.
Sentiment Classification Criteria
- • Positive: Good performance, new business orders, increased dividends, rising stock prices, etc.
- • Neutral: Simple disclosures, personnel changes, industry trends, etc.
- • Negative: Poor performance, disputes/lawsuits, recalls, sharp stock price drops, etc.
Scoring Formula
Combines the number of collected articles, positive ratio, and negative ratio to convert into a score of 0~25. If fewer than 5 articles are collected, it is treated as neutral (12.5 points).
Momentum Score
An item that evaluates short-term stock price trends. Composed of 3 sub-items.
| Item | Maximum | Description |
|---|---|---|
| 52-Week Position | 8 points | Evaluates what percentage the current price is compared to the 52-week high. Close to full score if 80% or higher, lowest score if 30% or lower. |
| 1-Month Return | 6 points | Return for the past 1 month (20 trading days). Full score if +10% or higher, 0 points if -10% or lower. |
| Volume Trend | 6 points | Evaluates how much the average volume of the past 5 days has increased compared to the 20-day average. A sharp increase in volume indicates increased interest. |
Disclosure Score
Analyzes the company's recent 30 days of disclosures submitted to DART to evaluate positive or negative business activities.
| Disclosure Type | Category | Impact |
|---|---|---|
| Share Repurchase | Positive | + |
| Dividend Decision | Positive | + |
| Major Contract Signing | Positive | + |
| Decision on Rights Issue | Negative | - |
| Convertible Bond (CB) Issuance | Negative | - |
| Occurrence of Lawsuits/Disputes | Negative | - |
| Regular Disclosure (Annual Report, etc.) | Neutral | ±0 |
Starting from the baseline (7.5 points), positive disclosures increase the score, and negative disclosures decrease it. If there are no disclosures within 30 days, the baseline is maintained.
Comprehensive Score Calculation
Simplifies the sum of the four scores. All stocks are recalculated daily at 5:30 AM (weekdays) based on the previous day's closing price.