How is StockPik's Value Score calculated?

Every stock starts at a base score of 50. Points are added or deducted based on 9 fundamental criteria: P/E Ratio, P/B Ratio, PEG Ratio, P/S Ratio, ROE, Gross Margin, Debt-to-Equity, and Current Ratio. The final score is clamped between 0 and 100. A score above 70 indicates a potentially undervalued stock.

What does a Value Score above 70 mean?

A Value Score above 70 indicates a stock that scores well across multiple fundamental value criteria — typically low P/E, low P/B, strong ROE, and manageable debt. It does not guarantee future performance but suggests the stock may be undervalued relative to its fundamentals.

What data sources does StockPik use?

All financial fundamentals come from SEC EDGAR XBRL filings (10-K, 10-Q, 20-F). Stock prices are sourced from Polygon.io. No analyst estimates or forecasts are used — only officially reported company data.

What is the Piotroski F-Score?

The Piotroski F-Score is a 0–9 financial strength score developed by Stanford professor Joseph Piotroski. It tests 9 binary signals across profitability (ROA, cash flow, accruals), leverage (debt change, current ratio change, dilution), and operating efficiency (gross margin change, asset turnover change). Scores of 7–9 indicate strong financial health; scores of 0–2 indicate weakness.

How the Value Score Works

Last updated April 2026 • Data: SEC EDGAR & Polygon.io

StockPik's Value Score is a composite 0–100 ranking that measures how attractively a stock is priced relative to its fundamentals. It combines nine criteria drawn from classic value investing principles — Benjamin Graham's margin of safety, Warren Buffett's quality screens, and Joseph Piotroski's financial strength framework.

All underlying data comes directly from SEC EDGAR XBRL filings and Polygon.io — no estimates, no analyst forecasts, no scraped third-party databases. What you see is what companies have officially reported to the US Securities and Exchange Commission.

The Formula at a Glance

Every stock starts at a base of 50. Points are added or deducted based on nine fundamental criteria. The final score is clamped to 0–100. A score above 70 indicates a potentially undervalued stock; below 30 suggests expensive or financially weak.

Value Score = 50 + P/E points + P/B points + PEG points + P/S points
+ ROE points + Gross Margin points
+ Debt/Equity points + Current Ratio points

Scoring Components

Price-to-Earnings Ratio (P/E)

The most widely used valuation metric. Compares the stock price to trailing twelve-month earnings per share. Lower P/E generally indicates a cheaper stock relative to earnings. Graham considered P/E below 15 a hallmark of value.

P/E = Price ÷ EPS (TTM)

P/E < 10 → +15 pts

P/E < 15 → +10 pts

P/E < 20 → +5 pts

P/E > 30 → −10 pts

Price-to-Book Ratio (P/B)

Compares market price to net asset value (book value per share). A P/B below 1 means the stock trades below its liquidation value — a classic deep value signal. Graham's rule of thumb: P/B × P/E < 22.5. What counts as a good P/B ratio varies significantly by industry. Browse stocks below book value.

P/B = Price ÷ (Equity ÷ Shares)

P/B < 1.0 → +15 pts

P/B < 1.5 → +10 pts

P/B < 3.0 → +5 pts

P/B > 5.0 → −10 pts

PEG Ratio

Adjusts the P/E ratio for earnings growth. A PEG below 1 suggests the stock may be undervalued relative to its growth rate — a concept popularised by Peter Lynch. Only scored when both P/E and a positive EPS growth rate are available.

PEG = P/E ÷ EPS Growth Rate (%)

PEG < 0.5 → +10 pts

PEG < 1.0 → +7 pts

PEG < 1.5 → +3 pts

PEG > 3.0 → −5 pts

Price-to-Sales Ratio (P/S)

Useful for companies with volatile or negative earnings. Compares market capitalisation to annual revenue. Particularly relevant for cyclical stocks, early-stage profitable companies, and financial turnarounds.

P/S = Price ÷ (Revenue ÷ Shares)

P/S < 1.0 → +8 pts

P/S < 2.0 → +5 pts

P/S < 5.0 → +2 pts

P/S > 10 → −5 pts

Return on Equity (ROE)

Measures how efficiently a company uses shareholder capital to generate profit. Buffett's benchmark: consistently above 15%. Negative ROE indicates losses relative to equity — a red flag in a value context.

ROE = Net Income ÷ Shareholders' Equity × 100

ROE > 20% → +10 pts

ROE > 15% → +5 pts

ROE < 0% → −10 pts

Gross Margin

High gross margins indicate pricing power and durable competitive advantage — a key Buffett quality screen. Low gross margins leave little room for error in operations, interest, or downturns.

Gross Margin = Gross Profit ÷ Revenue × 100

GM > 60% → +7 pts

GM > 40% → +5 pts

GM > 20% → +2 pts

GM < 10% → −5 pts

Debt-to-Equity Ratio (D/E)

Measures financial leverage. Graham preferred companies with total liabilities not exceeding twice equity. Heavy debt amplifies losses in downturns and limits management flexibility.

D/E = Total Liabilities ÷ Shareholders' Equity

D/E < 0.3 → +10 pts

D/E < 0.5 → +5 pts

D/E > 2.0 → −10 pts

Current Ratio

Tests short-term liquidity — can the company meet its obligations over the next 12 months? Graham's minimum was 2.0 for defensive investors. A current ratio below 1.0 means current liabilities exceed current assets.

Current Ratio = Current Assets ÷ Current Liabilities

CR ≥ 2.0 → +5 pts

CR ≥ 1.5 → +3 pts

CR < 1.0 → −5 pts

Additional Metrics Displayed

These metrics are shown on each stock page but do not directly contribute to the Value Score.

Graham Number

sqrt(22.5 × EPS × Book Value Per Share). The maximum price Benjamin Graham considered fair for a stock. A price below the Graham Number suggests a margin of safety. Full explanation → Browse stocks below Graham Number →

Piotroski F-Score

0–9 financial strength score based on 9 binary signals across profitability, leverage, and operating efficiency. Scores of 7–9 indicate strong financial health. Full explanation → Browse high F-Score stocks →

EV/EBITDA

Enterprise Value divided by Earnings Before Interest, Tax, Depreciation & Amortisation. Capital-structure neutral — useful for comparing companies with different debt levels.

Margin of Safety

(Graham Number − Price) / Graham Number × 100. The percentage discount to intrinsic value. Graham recommended a 33%+ margin of safety.

NCAV Per Share

(Current Assets − Total Liabilities) / Shares. Net Current Asset Value — Graham's most conservative measure of liquidation value.

ROA

Net Income ÷ Total Assets. Measures how efficiently assets generate profit.

ROIC

NOPAT ÷ Invested Capital. Return on Invested Capital — considered by many the best single measure of business quality.

Free Cash Flow Per Share

(Operating Cash Flow − CapEx) ÷ Shares. The cash a company generates after maintaining its asset base.

Interest Coverage

Operating Income ÷ Interest Expense. How many times a company can cover its interest payments from operating profit.

Data Sources

SEC EDGAR — Fundamentals

All financial fundamentals (EPS, revenue, book value, cash flow, margins, debt, shares outstanding) are sourced directly from XBRL-tagged SEC filings: 10-K (annual), 10-Q (quarterly), and 20-F (foreign private issuers). This is the most authoritative and timely source of US company financial data, published by the US Securities and Exchange Commission.

Data is public domain. Updated within 24 hours of a new filing.

Polygon.io — Prices

End-of-day stock prices are sourced from Polygon.io's market data API. Prices are adjusted for splits. For foreign ADRs (e.g. BABA, JD, BIDU), the NYSE ADS price is used.

Updated every 30 minutes on trading days.

ADS Ratio Adjustment

For foreign companies filing 20-F reports with an ADS structure (e.g. 1 ADS = 8 ordinary shares for Alibaba), SEC EDGAR's EntityListingDepositoryReceiptRatio DEI tag is used to normalise per-ordinary-share EPS and share counts to a per-ADS basis, ensuring P/E, P/B, Graham Number, and market cap are calculated correctly.

Disclaimer

StockPik is an informational tool only. The Value Score and all metrics displayed are based on historical and reported financial data. Nothing on this site constitutes investment advice, a recommendation to buy or sell, or a solicitation of any investment. Past financial performance is not a guarantee of future results. Always conduct your own research and consult a qualified financial adviser before making investment decisions.

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