The Gradement rating 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 the other major ratings calculated by Gradement.
A high rating 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 rating value will be an indication of a low score in any of the above categories.
The value of the Gradement rating defines a scale with which any company can be graded from the investor point of view:
|Rating value range|
|0 - 2.5||SCANT GRADE|
|2.5 - 5||POOR GRADE|
|5 - 7||AVERAGE GRADE|
|7 - 8||FAIR GRADE|
|8 - 10||INVESTMENT GRADE|
Only companies graded FAIR GRADE or INVESTMENT GRADE are considered by Gradement as appropriate to make or maintain an investment in them.