The overall company Grade tries to capture, in a single value, the appropriateness of making or maintaining an investment in a particular company. Its value is calculated as a combination of other major scores calculated by Gradement.
A high grade 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
The value of this Grade defines a scale with which any company can be graded from the investor point of view:
These categories are further subdivided into these 13 subcategories:
Only companies graded as A or B are considered by Gradement as appropriate to make or maintain an investment in them.