Welcome to our platform, where we aim to simplify fundamental analysis for stock market investing.

In our newsletter @ https://www.budgetiger.in, we delved into the concept of fragility in a series of posts.

Fundamental Analysis scores provided in this website were conceptualised from the four fundamental analysis pillars as explained in fragility series. The fourth pillar i.e. Time is more related to investor than the company itself and accordingly is not part of the website.

Our approach in this website is based on first three core pillars of fundamental analysis:

Pillar 1 - Financial Strength: The Financial Score (derived from fragility score card explained in the newsletter) quantifies a company's financial strength, assigning a value between 0 and 10. A score of 0 represents a financially robust company, while a score of 10 indicates a financially weak company. The Financial score is derived derived from a combination of 4 key financial ratios as per latest available audited/unaudited financial statements. 4 Key ratios considered are Equity as a percentage of Balance Sheet Total, Break-Even Sales as a percentage of Actual Sales, Return on Capital Employed & Cash Flow from Operations divided by (Replacement Capex plus Yearly Debt Obligations). The Financial Score is dynamic and subject to change every quarter or year, depending on a company's financial performance. For instance, if a debt-free company takes a substantial loan for a greenfield project, its financials become weak. Similarly, a significant dip in sales will deteriorate company financial performance.

Pillar 2 - Valuation: The Valuation score quantifies valuation of a company assigning a value between 0 to 10. A score of 10 represents overvaluation and a score of 0 represents undervaluation. The Valuation score is derived from a combination of Historical 3 year, 5 year & 10 year price-to-earnings ratios, present price-to-earnings ratio, price-to-earnings-to-growth (PEG) ratios based on the last 5 years of earnings growth, and PEG ratios based on the last 10 years of earnings growth.

Pillar 3 - Management: The Management score is a 0 to 10 score summarising 4 key quantitative aspects of Management like % Promoter shareholding (Skin in the game), % promoter shares pledged (unwarranted risks), % Average Dividend Payout for past 3 years (wealth sharing with Minority shareholders) and Average 10 years Operating Cash flows by Average debt of 10 years (Capital financing decisions). A 0 score indicates investor friendly Management and a 10 score indicates High risk taking management.  

Company Fundamental Score: We calculate the company's fundamental score assigning a value between 0 to 10 by combining the Financial Score, Valuation Score and Management Score. The company fundamental score is high incase of high risk in any of the three key pillars i.e. Financials, Valuation and Management and the score is low  only if there is low risk in all the three pillars. This score simplifies risk assessment, with lower scores indicating lower risk and higher scores suggesting increased risk. It is imperative to consider this score before making any investment decisions.

We concentrate our fundamental analysis scores on companies with a market capitalization more than Rs 100 Crs. This focus arises from the observation that smaller firms often operate in localized markets, making them inherently more prone to fundamental weaknesses.

Note for users: The traditional fundamental analysis including scores provided in this website may not be effective for Banks and other financial companies as they are exposed to a variety of additional risks detailed in our newsletter.

Disclaimer: The Company Fundamental score is a proprietary tool designed for informational purposes only and should not serve as the sole basis for investment decisions. We advice to conduct thorough research and consult with financial professionals before making any investment choices.

You may reach out to us at budgetiger@budgetiger.in