gmt-score is a company's main score. It summarizes, in a single value, its profitability, solvency and price. Its value is calculated as a non-linear combination of the other scores associated with the company.
gmt-score value is an indication of a company with a high score in all categories of solvency, profitability, price and stability of cash flows and free earnings. On the other hand, a low grade value will be an indication of a low score in any of the above categories.
How to use the grade
Only companies with
gmt-score ≥ 7 are considered by Gradement to be excellent companies from a quantitative financial, and economic point of view.
Gradement calculates the value of this score as a non-linear combination of the scores that measure dynamic solvency, Price/free cash flow and the economic and equity profitability scores of the company.