How the scores work
The analysis follows the frameworks taught in the study videos (consistency, profitability and solvency; the four-perspective checklist; size and index weight; the 52-week-low process; the P/E types; the Shariah screen), applied automatically to public data.
The model in 60 seconds
- Consistency (30%): did EPS rise most years, were there loss years, were dividends paid every year, is profit growing?
- Profitability (30%): ROE against sector benchmarks (banks 13%+, others 15%+), profit growth over about 4 years and last year.
- Solvency (20%): debt-to-equity for normal companies (0.5 strong, above 1.5 risky, above 5 extreme). Banks and insurers have no NPL data here, so earnings stability stands in.
- Valuation (20%): P/E (trailing preferred), price to NAV and Graham fair value (the square root of 22.5 x EPS x NAV).
- Risk flags then add or subtract points: category (Z -15, B -5, N -6), small cap (-8), thin trading, extreme debt, odd ownership.
- Hard overrides: a net loss last year, negative NAV or an inactive status forces the verdict to Avoid; very little data gives Unrated.
Verdicts: Strong 75+, Good 62+, Average 48+, otherwise Weak.
What the score cannot tell you
- Revenue, margins and NPL are not available in the data, so these are not scored.
- No score predicts price. A strong company can still fall; a weak one can rise for a while (especially small caps in a speculative market).
- Timing matters: videos 3 and 5 stress buying when the market is weak, and checking why a stock is at a 52-week low.
- Reported figures can be wrong or manipulated; reputation and management (video 3) are not in the numbers. Always read the company's own reports.
Every number explained
These are the same explanations shown when you tap an (i) icon.
Overall and pillars
Overall score
Weighted blend of four pillars: Consistency 30%, Profitability 30%, Solvency 20%, Valuation 20%, then adjusted for risk flags (category, size, liquidity, ownership).
- 62 or more: Good (75+ is Strong)
- 48 to 62: Average
- Below 48: Weak
Why: One number to compare stocks quickly. It is a screening aid, not a recommendation: always open the stock and read the reasons behind it.
Source: Analysis model (S1 three pillars + S3 qualitative checks + S4/S5 size and valuation)
Consistency
How steadily EPS and profit grew and how reliably dividends were paid over the last ~5 years.
- 70 or more: Steady
- 50 to 70: Mixed
- Below 50: Erratic
Why: Videos 1 and 3: steady growers are rewarded over time; cyclical or erratic earners are cycle bets and can trap capital (2010 lesson). EPS should rise most years, never swing wildly.
Source: S1, S3, S6
Profitability
How efficiently the company turns shareholders' money into profit (ROE) and how fast profit is growing.
- 70 or more: Strong
- 50 to 70: Moderate
- Below 50: Weak
Why: Video 1: a bank ROE above 12-13% (non-banks about 15%+) shows efficient use of capital. Growing profit is what ultimately lifts the share price and dividends.
Source: S1
Solvency
How exposed the company is to debt. Non-banks: debt-to-equity. Banks/insurers: proxied by stability of ROE (NPL data is not available).
- 70 or more: Safe
- 50 to 70: Manageable
- Below 50: Risky
Why: Video 1: debt wiped out failed banks and over-leveraged firms (Power Grid at 20-50x equity). Zero-debt firms like Square survive any credit squeeze.
Source: S1
Valuation
How cheap the price is versus earnings (P/E), book value (price/NAV) and the Graham fair-value estimate.
- 70 or more: Attractive
- 50 to 70: Fair
- Below 50: Expensive
Why: Videos 3, 5, 7: a good company at a bad price is still a bad buy. Compare with the stock's own history and never buy at P/E 80 (the 2010 mistake).
Source: S3, S5, S7
Valuation
P/E (trailing 12 months)
Share price divided by the last four reported quarters of EPS. How many years of current profit you pay for the share.
- 12x or less: Cheap
- 12x to 20x: Fair
- Above 20x: Expensive
Banks, NBFIs and insurers:
- 8x or less: Cheap
- 8x to 12x: Fair
- Above 12x: Expensive
Why: Video 7 recommends trailing P/E as the most honest version because it only uses reported quarters. Banks usually trade at lower P/E (4-8) than other sectors. Compare against the stock's own past P/E: a P/E far above history needs a reason. No P/E when loss-making.
Source: S7, S1, S3
P/E (last audited year)
Share price divided by the last full audited year's EPS (the P/E DSE calls 'based on latest audited financial statements').
- 12x or less: Cheap
- 12x to 20x: Fair
- Above 20x: Expensive
Banks, NBFIs and insurers:
- 8x or less: Cheap
- 8x to 12x: Fair
- Above 12x: Expensive
Why: Reliable but can be stale: ignores recent quarters. If this is far below the trailing or annualised P/E, recent earnings have weakened (video 5, Reckitt example).
Source: S7
P/E (current, annualised)
Share price divided by recent-quarter EPS scaled up to a full year (e.g. 6-month EPS x 2).
- 12x or less: Cheap
- 12x to 20x: Fair
- Above 20x: Expensive
Banks, NBFIs and insurers:
- 8x or less: Cheap
- 8x to 12x: Fair
- Above 12x: Expensive
Why: Video 7: assumes the remaining quarters repeat the recent ones, which often is not true (seasonality, one-off items). Use it as a cross-check against the trailing P/E, not on its own.
Source: S7
Graham fair value
Benjamin Graham's ceiling price = square root of (22.5 x EPS x NAV per share).
Why: A rule-of-thumb fair value for profitable, asset-backed companies. Price below it suggests a margin of safety. It is crude for banks and asset-light or fast-growing firms.
Source: Graham (Intelligent Investor), applied on scraped EPS and NAV
Margin of safety vs Graham value
How much cheaper the price is than the Graham fair value: (Graham value - price) / Graham value.
- 25% or more: Discount
- 0% to 25%: Fair
- Below 0%: Overpriced
Why: Video 6 'margin of safety': buy only with a buffer for error. Positive and large means a discount; negative means you pay above the rule-of-thumb value.
Source: S6 + Graham
Quality and growth
EPS (last audited year)
Earnings per share for the last audited year: net profit divided by shares.
- 1 or more: Profitable
- 0 to 1: Break-even
- Below 0: Loss
Why: Video 3: EPS must be positive and should grow, even slightly, every year. A flat EPS for many years makes a poor long-term holding; a loss means no P/E and usually no dividend.
Source: S3
Years EPS grew
Out of the year-over-year steps in the last ~5 years, how many times EPS was higher than the year before.
- 75% or more: Growing
- 50% to 75%: Mixed
- Below 50%: Falling
Why: Video 1: consistent growers (Square: every year) earn a premium; cyclical earners (BSRM) swing with the economy. Video 6: avoid companies whose EPS is suddenly good then suddenly bad.
Source: S1, S6
ROE (last year)
Return on equity = EPS / average NAV per share. Profit earned on each taka of shareholders' money. (Computed from audited EPS and NAV; not the same as a published ROE.)
- 15% or more: Efficient
- 10% to 15%: Moderate
- Below 10%: Inefficient
Banks, NBFIs and insurers:
- 13% or more: Efficient
- 9% to 13%: Moderate
- Below 9%: Inefficient
Why: Video 1: banks consistently above 12-13% are efficient; non-banks above ~15% are efficient by Bangladesh standards. Below 10% means capital is not working hard.
Source: S1
ROE (average of last years)
Average of the yearly ROE values over the available years.
- 15% or more: Efficient
- 10% to 15%: Moderate
- Below 10%: Inefficient
Banks, NBFIs and insurers:
- 13% or more: Efficient
- 9% to 13%: Moderate
- Below 9%: Inefficient
Why: Video 1: consistency matters more than one good year. A high average shows the business is efficient through the cycle, not just in a good year.
Source: S1
ROE (weakest year)
The lowest yearly ROE in the available history.
- 10% or more: Resilient
- 5% to 10%: Dips
- Below 5%: Fragile
Banks, NBFIs and insurers:
- 9% or more: Resilient
- 5% to 9%: Dips
- Below 5%: Fragile
Why: Shows how bad the worst year was. Resilient firms still earn a decent return in their weakest year. Used as the solvency proxy for banks/insurers where NPL is not available.
Source: S1 (adapted)
Profit growth (CAGR)
Compound annual growth rate of net profit from the earliest to the latest audited year available (about 4 years).
- 10% or more: Growing
- 0% to 10%: Flat
- Below 0%: Shrinking
Why: Video 1: profit growth (Pubali, BRAC Bank profits growing several-fold in 5-6 years) is what drives long-term returns. A shrinking profit trend erodes dividends and price.
Source: S1
Profit growth (last year)
Change in net profit in the latest audited year versus the year before.
- 10% or more: Growing
- 0% to 10%: Flat
- Below 0%: Falling
Why: Shows the current direction. A sharp fall can explain a 52-week-low price (video 5: Reckitt's profit fell ~28%).
Source: S5
Net profit (last year)
Net profit for the last audited year in crore taka.
- 1 or more: Profit
- 0 to 1: Break-even
- Below 0: Loss
Why: Videos 1, 3: a loss is a big red flag (Power Grid, 2023-25). Size also matters: bigger absolute profit usually means a sturdier business.
Source: S1
Loss years (last ~5)
How many of the last audited years had a net loss.
- 0 or less: None
- 0 to 1: One
- Above 1: Several
Why: Videos 3 and 6: inconsistent earners are the ones that fall hardest in a downturn. Zero loss years is the standard to look for.
Source: S3, S6
Dividends and debt
Years paying a dividend
In how many of the last ~5 years the company paid a cash or stock dividend.
- 5 or more: Every year
- 3 to 5: Mostly
- Below 3: Irregular
Why: Video 1: a company that pays and grows dividends while profits grow rewards shareholders; zero dividends signal trouble (Power Grid 2024-25). Video 3: dividends make good shares worthwhile every year.
Source: S1, S3
Dividend yield
Last year's dividend as a percentage of the year-end share price (as reported by DSE).
- 4% or more: Attractive
- 2% to 4%: Modest
- Below 2%: Low
Why: Video 3: yield will not match FD/savings certificates because profits are partly kept in the business; judge it together with payout ratio and profit growth.
Source: S3
Dividend payout ratio
Cash dividend per share divided by EPS (face value Tk 10: cash dividend % / 10).
- 20% - 70%: Sustainable
- Under 20%, or 70% - 100%: Edge
- Over 100%: Unsustainable
Why: Video 3: companies keep part of profits to grow (profit 10 -> dividend 3 means 7 still works for you). 20-70% is healthy; above 100% is paid from reserves and cannot last; near 0% with big profits means little cash return.
Source: S3
Cash dividend (last year)
Cash dividend as % of the Tk 10 face value. 120% = Tk 12 per share. Bonus shares are shown separately.
Why: Compare it with EPS (payout ratio) rather than on its own: a high % on a cheap stock is not automatically good.
Source: S3
Debt / equity
Short + long-term loans divided by shareholders' equity (NAV x shares).
- 0.5x or less: Low debt
- 0.5x to 1.5x: Moderate
- Above 1.5x: High debt
Why: Video 1: below 0.5 is strong, 0.5-1 well managed, above 1 healthy but risky, above 1.5 high risk, 5x+ extreme (Power Grid 20-50x). Zero (Square) means loan risk cannot hurt. Sudden new borrowing makes investors sell (video 5).
Source: S1, S5
Loans / market cap (Shariah test 1)
Interest-bearing debt as a % of market cap (the Shariah rule uses a 36-month average market cap; this uses today's).
- 25% or less: Passes
- 25% to 33%: Borderline
- Above 33%: Fails
Why: Video 2: S&P Shariah limit is 33% (AAOIFI 30%). One of three financial tests; interest income and cash/investment ratios must also pass.
Source: S2
Size, liquidity and ownership
Market cap
Share price x total shares: what it would cost to buy the whole company.
- 1000 or more: Large cap
- 200 to 1000: Mid cap
- Below 200: Small cap
Why: Video 4: size, not share price, tells how big a company is. Large caps (> Tk 1,000 cr) are stable and hard to manipulate; small caps (< Tk 200 cr) are where gambling and manipulation concentrate.
Source: S4
Size class
Large / mid / small cap by market cap (thresholds are the presenter's for Bangladesh).
- Large cap (> Tk 1,000 cr)
- Mid cap (Tk 200-1,000 cr)
- Small cap (< Tk 200 cr)
Why: Video 4: large caps are safe from manipulation and volatility; small caps are the most exposed to gamblers.
Source: S4
Free float
Share of the company not held by sponsors/directors, i.e. actually available for trading.
- 40% or more: Liquid
- 20% to 40%: Limited
- Below 20%: Thin
Why: Video 4: free float decides how easily you can buy or sell and how easily the price can be pushed around.
Source: S4
Daily turnover
Most recent day's traded value (volume x price) in crore taka.
- 1 or more: Liquid
- 0.2 to 1: Moderate
- Below 0.2: Illiquid
Why: Thin trading makes entries and exits costly and prices easier to manipulate. One day's value is noisy; treat it as a rough liquidity check.
Source: S4 (adapted)
DSE category
DSE market category. A = regularly holds AGMs and pays 10%+ dividends; B = pays less than 10% dividend; N = newly listed; Z = fails regulatory requirements, no dividend, or loss-making.
- A: A: regular, dividends
- B / N: B/N: irregular or new
- Z: Z: poor or defaulting
Why: Videos 3, 5, 6: the 52-week-low and quality screens start from category A. Z-category shares are the gambling favourites with no merit: avoid for long-term investing.
Source: S3, S5, S6
Sponsor / director holding
Share of the company held by sponsors and directors.
- 30% - 75%: Committed
- 15% - 30%, or 75% - 90%: Watch
- Under 15% or above 90%: Weak or dominant
Why: Video 3: very low sponsor holding means weak commitment to the company; very high holding (e.g. 90%) leaves little free float. 30-75% is a healthy balance.
Source: S3
Institutional holding
Share held by institutions (funds, banks, insurers).
- 15% or more: Strong
- 5% to 15%: Some
- Below 5%: Little
Why: Video 3: institutions think long-term and use professional analysts. Prefer institutional holding above public holding.
Source: S3
Public (retail) holding
Share held by ordinary retail investors.
- 45% or less: Balanced
- 45% to 65%: High
- Above 65%: Very high
Why: Video 3: if retail owns, say, 80%, retail suffers most when things go wrong.
Source: S3
Foreign holding
Share held by foreign investors.
Why: Video 5: foreign selling can push a good stock to a 52-week low (BRAC Bank foreign holding fell 34% -> 32%) without any change in fundamentals. Check the trend, not just the level.
Source: S5
Above 52-week low
How far the price is above its lowest price of the last 52 weeks.
Why: Video 5: near the low (under ~10%) can be an entry, but only if fundamentals are intact and the fall is market-wide or caused by foreign selling, not by shrinking revenue and profit. Never buy on this alone.
Source: S5
Below 52-week high
How far the price is below its highest price of the last 52 weeks.
Why: Gives context for a pullback. A large fall with good fundamentals can be an opportunity; with falling profit it is a warning (video 5).
Source: S5
Labels
Verdict
Plain label from the overall score, with hard overrides: 'Avoid' if the last year was a loss, NAV is negative, or the stock is inactive; 'Unrated' if too little data.
- Strong / Good
- Average
- Weak / Avoid
Why: Quick triage only. The reasons shown on each stock page explain every point gained or lost.
Source: Analysis model
Shariah (partial check)
Business screen (conventional banks, insurers, tobacco are out) plus the debt-ratio test. Interest-income and cash-ratio tests are not automated here.
- Debt ratio passes
- Needs full check
- Not compliant
Why: Video 2: both a business screen and three financial ratios must pass; check the annual report for the rest before relying on it.
Source: S2