The Safety Score

Companies directly correlated with the market, these generally provide low-risk.

Inputs to our calculation

Our Safety Score is a reduction of Beta. Beta is a measure of volatility, specifically how much an individual company moves compared to the market as a whole.

If you're invested in the market at all, you open yourself up to some level of risk. Companies with beta = 1 will be most directly correlated with the market, and will move in lock-step regarding overall return. A company with beta = 1 will receive our highest safety score – you're as safe as the market and can expect market-level returns.

Companies with Beta > 1 will experience greater fluctuations that the entire market (providing above-market gains, or worse-than-market losses), and vice versa with Beta < 1.

When Beta < 0, the company will move opposite the market – we consider this a bit unsafe, and hence award a low Safety score.

Growth

The companies with the fastest revenue growth.

Momentum

Companies with upward short-term momentum that could produce short-term gains.

Scalability

Companies we deem as scalable – derived from private equity formulas.

Value

Comparatively cheap companies where you can get the most "bang for your buck".

Profitability

Companies with rock solid profitability, integral in future performance.

Safety

Companies directly correlated with the market, these generally provide low-risk.

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