How to read the composite score

"All I know is: if I buy the right kind of business, at the right price, with the right people, I'll do well over time."

All I know is: if I buy the right kind of business, at the right price, with the right people, I'll do well over time.

Every company gets a 0-100 composite score built from four groups: fundamental strength, profitability and efficiency, capital structure, and valuation against intrinsic value.

Each group is a weighted set of criteria - EPS growth, ROIC above 10%, gross margin, price to free cash flow, debt levels - and every criterion is shown with the number behind it. The score is a starting point for reading, never a verdict.

The score does not tell you whether to buy or sell: it tells you where to start reading. A high score built on one weak group - for example excellent profitability but an already expensive valuation - deserves to be opened up and understood, not just read as a final number.

The underlying idea is not new: the right business, the right price, the right people. The composite score follows the same principle in more detail - fundamentals and capital structure cover the business, valuation covers the price, profitability and efficiency describe how well the available capital is managed.