Stock Evaluator: The Contrarian Way by Kaneki Kojo

Valuation Score Explainer

A composite score, typically ranging from 0 to 18, that measures how attractively a stock is priced relative to its assets, cash flow, earnings growth, debt load, and dividend yield. In certain edge cases, some stocks could score less than 0 (due to a mix of a heavy debt load, negative book value, and negative free cash flow) or more than 18 (due to a high yet manageable dividend yield).

How It Works

The Stock Evaluator app is to be used to save time in the preliminary analysis of stocks as part of a full fundamental analysis process. The goal is to put stocks on your radar via the Screener tab and to help you avoid paying a high price for risky assets via the Analysis tab. Inspired by the books The Intelligent Investor (Benjamin Graham) and One Up On Wall Street (Peter Lynch), the valuation score aims to aggregate seven independent valuation signals into a single number.

Four of these signals come from valuation metrics (Price / Book, P/E × Price / Book, Price/FCF, Growth/Earnings), and two come from debt health ratios (Net Debt / Book, Net Debt/FCF). A dividend bonus rewards dividend-paying stocks, while non-payers don't receive a bonus. Dividend payers above a 100% payout ratio receive a penalty to their valuation score because they're paying out more money in dividends to shareholders than they've earned in net income over that same period. The scores are grouped into the following categories:

Expensive≤ 5

Fair Value6 – 10

Good Value11 – 14

Deep Value≥ 15

Historical Charts

Beyond the core valuation score, the app provides two historical charts to give you a long-term perspective on a stock's true value:

Price & Earnings Chart:Inspired by Peter Lynch, this chart plots the stock's share price against its underlying earnings. Because a stock's price tends to track its earnings over the long term, diverging lines can be a powerful signal. When the price line dips significantly below the earnings line, the stock may be undervalued and possibly mispriced by the market. Conversely, a price soaring far above its earnings may signal overvaluation and could be due for a correction.
Priced in Gold: Inspired by What Has Government Done To Our Money(Murray Rothbard), this chart tracks the stock's price converted into ounces of gold to strip away the illusion of fiat currency inflation. This helps you evaluate whether the stock is genuinely growing in real-world purchasing power over time, or if its price gains are simply a byproduct of an expanding money supply.

Automatic Override

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Negative Book Value → Score = -18

If a company's total liabilities exceed its total assets (i.e. Book Value < 0), the score is automatically set to −18. This flags technical insolvency if debts had to be paid today. None of the other metrics matter if the balance sheet is underwater.

Disclaimer

Capital at risk. The value of investments can go down as well as up. Past performance is not indicative of future results. This tool provides balance sheet analysis and does not constitute personal financial advice. Do your own due diligence.
The score is backward-looking — it uses trailing twelve-month (TTM) data, not forward estimates.
Sector differences are not adjusted for. Capital-intensive industries (e.g. airlines and utilities) naturally carry more debt and will score lower on debt metrics.
The score does not account for management quality, competitive moats, or macro-economic conditions.
It is designed as a screening tool, not a buy/sell recommendation. Always combine with qualitative research. The User is solely responsible for the outcome of their investments.