Finanzoo F-Score – The Intrinsic Value of a Stock
What Is the Finanzoo F-Score?
The Finanzoo F-Score is the core of Finanzoo's fundamental analysis. It expresses the intrinsic value of a stock in a single metric. Fundamental balance sheet ratios are weighted using a point-based method and related to the current stock price. The maximum achievable F-Score is 100 points, the lowest value is −56.9 points.
What the F-Score Tells You
A high F-Score means a stock is fundamentally undervalued. A low F-Score suggests a currently high valuation or general problems within the company. A negative F-Score primarily results from special events – for example point deductions for very strong short-term price movements upward or downward.
Criteria and Weighting
| P/FCF – Price-to-Free-Cashflow Ratio | 22% |
| Equity Ratio | 20% |
| Return on Assets | 25% |
| P/E Ratio | 11% |
| P/B Ratio | 12% |
| Dividend Yield | 10% |
In addition, the Piotroski F-Score is factored in as a correction factor. Depending on the result, it can shift the F-Score down by up to 50 points or up by up to 25 points.
Interpretation
| F-Score | Assessment |
|---|---|
| 70 – 100 | Fundamentally cheap – buy candidate |
| 40 – 70 | Fair valuation |
| 10 – 40 | Rather expensive or weak ratios |
| < 10 / negative | Currently highly valued or company problems |
F-Score for Stock Comparison
The F-Score has special significance as a relative and comparative metric. Finanzoo offers filtering by countries, indices, and sectors – so the F-Score can fully leverage its strength as a comparative metric. This is especially valuable when investors are looking for undervalued stocks in specific market segments.
Investor Benchmark
Investors can use the F-Score as a benchmark for their own investment decisions and set their own thresholds for buying or selling. This creates a rules-based system – superior in the long run to purely gut-feeling decisions.
"The only thing you can be sure of when forecasting future stock earnings is that you probably won't be right in the forecast." – Benjamin Graham, The Intelligent Investor
Limitations of the Model
The Finanzoo F-Score is an automated, algorithmic evaluation of publicly available balance-sheet and price data. It does not constitute investment advice and is not a recommendation to buy or sell, but rather a structured classification based on defined quantitative criteria. Qualitative factors such as management quality, competitive position, regulatory environment or short-term market events are not taken into account. Historical scores are not an indicator of future price performance – past values do not allow any reliable conclusions about the future. The underlying data is mostly sourced from public sources such as www.bundesanzeiger.de and www.sec.gov; no guarantee is given for their accuracy or completeness. For further details see Legal Notices & Risk Disclaimer.