The ratings generated within Stock Rover are built upon a comprehensive analysis of a company’s historical performance relative to its industry peers. These proprietary ratings are divided into several key categories, including Growth, Valuation, Efficiency, Financial Strength, Dividends, and Momentum.
While the exact formulas are proprietary, the core methodology involves analyzing the trajectory and volatility of multiple metrics within each category over time. Each individual metric is assigned a raw rating, which is then converted into an industry group percentile rank. These ranks are then aggregated into a final category rating using a weighted average; more significant metrics are given a higher “weight,” while secondary metrics contribute less to the final score.
To calculate a company’s Growth Rating, we evaluate a diverse set of fundamental and forward-looking metrics, including:
For each metric, a specific formula evaluates the company against its peers to generate a percentile rank. For example, when assessing Revenue, Operating Income, and EPS Growth, the system analyzes 1-year, 3-year, 5-year, and 10-year growth rates. It also accounts for the slope (trajectory) and the volatility of that growth to ensure the rating reflects consistent progress rather than a one-time spike.
Weighting plays a crucial role in these calculations. For instance, EPS Growth is considered a primary driver of shareholder value and carries a high weight. In contrast, a metric like Revenue Per Employee—while useful for gauging operational efficiency—carries a lower weight in the final determination of a company’s overall Growth Rating.
