Open methodology

How the Tapetide Score Works

The Tapetide Score is a standardized, data-driven rating from 0 to 100 that summarizes a stock’s overall strength across six factor pillars and a governance risk check. It is pure data and math — reproducible, sector-relative, and built to be compared across stocks and over time.

The principles behind the score

Standardized — 72 always means 72

Every metric is measured against a fixed, versioned reference rather than today’s shifting market. So a 72 today means the same as a 72 last year, and the same as a 72 for another company.

Sector-relative and fair

A bank, an FMCG company and a manufacturer are each scored against their own sector’s history — using financial templates suited to how each type of business actually works — so they can be compared fairly.

Point-in-time honest

A historical score only uses information that was actually known on that date. No hindsight, no look-ahead bias — the score history you see is the score you would have seen.

Deterministic and reproducible

The score is pure data and math — not an AI opinion. The same inputs always produce exactly the same score, and every score is stamped with its formula and reference version for audit.

Red flags can only pull down

Governance risks — surveillance flags, credit downgrades, promoter pledge, insider selling, audit qualifications — act as a penalty that can reduce or hard-cap the score. Strong fundamentals can never paper over a serious red flag.

Stable, not jumpy

The score is smoothed and held within a small band, so it reflects real changes in the business rather than day-to-day market noise.

The six factor pillars

Six pillars add up to the core score. A seventh — the governance risk overlay — can only subtract.

Quality

~25%

Capital efficiency (return on capital and equity), profitability margins, earnings quality and how durable those margins have been. Quality is weighted highest because it is the most persistent driver of long-run returns.

Valuation

~20%

How cheap or expensive the stock is — both versus its own sector’s history and versus its own past. Extreme cheapness on a fragile balance sheet is treated as a value trap, not a bargain.

Growth

~15%

Sales and profit trajectory over multiple years, plus how consistent that growth has been. Lumpy, one-off growth scores lower than steady compounding.

Financial Health

~15%

Solvency and resilience — leverage, interest coverage, distress indicators and liquidity. Strong balance sheets add points; severe distress is handled by the risk overlay below.

Momentum

~15%

Volatility-adjusted price trend on corporate-action-adjusted prices, so splits and bonuses never distort the signal. Trend strength is rewarded, raw volatility is not.

Ownership

~10%

The direction of institutional (FII/DII) and promoter holding changes — who is accumulating or distributing the stock.

Governance & Risk overlay

penalty only

Surveillance flags, credit-rating downgrades, promoter share pledges, insider selling and audit qualifications act as a penalty multiplier that can reduce — or hard-cap — the score. This is the trust layer: strong fundamentals can never mask a serious red flag.

Reading the score

70–100 Strong Broad-based strengths across pillars and clean governance.
60–70 Above average Meaningful strengths in several pillars.
50–60 Average Roughly typical for its sector and size.
30–50 Below average Notable weaknesses or caveats worth checking.
0–30 Weak Multiple weak pillars and/or active red flags.

Open, but not gameable

We publish the what and the why: the factor pillars, their approximate weights, the philosophy, the score bands and our validation results. We keep the precise thresholds, exact metric weights and internal calibration confidential — both to protect the integrity of the score and to prevent it from being gamed. The goal is simple: publish enough that you can understand and trust the score, without handing over a recipe to manipulate it.

Frequently asked questions

The Tapetide Score is a standardized 0–100 rating for Indian stocks, computed purely from numeric data — fundamentals, prices, ownership and governance. It combines six factor pillars (Quality, Valuation, Growth, Financial Health, Momentum, Ownership) with a governance risk overlay into a single comparable number.

The Tapetide Score is data analysis and decision-support only — it is not investment advice. Tapetide is not a SEBI-registered research analyst or investment adviser. Consult a qualified advisor before investing.