Ticker Scores Methodology

Wealth tier

Updated nightly at 04:00 UTC

Ticker Scores give you a quick, at-a-glance signal on any stock or ETF across five dimensions: Risk, Value, Quality, Momentum, and Dividend. Each score runs from 0 to 100. Higher is always better, a Risk score of 85 means lower risk, a Value score of 90 means an attractively priced stock.

Scores are computed automatically every night using fundamental and market data from EODHD. They are not buy or sell recommendations. They are computed with transparent methodology for education purposes only. They are a starting point for your own research.

Reading the tables

Every threshold below is absolute, not relative to other securities. A beta of 0.4 scores 90 whether every comparable trades at 0.3 or at 2.0; there is no peer group, no sector cohort and no percentile across the market. There is no percentile-shaped input at all: 12-1 Price Momentum measures a security against its own past, and every other table is a fixed threshold. This is worth knowing before you compare two scores: it means a bank and a software company are measured against the same numbers, which is deliberate and published, but it is also why the same score can mean quite different things in two industries.

Nine of the thirteen tables below score a band that includes its upper number and excludes its lower one, a beta of exactly 0.80 scores 75, not 55. The four that work the other way are Current Ratio, Analyst Recommendation Ratio, 12-1 Price Momentum and Dividend Yield: those include the lower number, so a dividend yield of exactly 2.00% scores 70.

Risk: How safe is the balance sheet?

The Risk score measures how likely a company is to weather a downturn. A higher score means lower overall risk. Three signals are averaged together:

Beta (price volatility vs. the market)

Beta measures how much a stock moves relative to the broad market. A beta of 1.0 moves in lockstep with the market. Below 1.0 is less volatile; above 1.0 is more volatile.

Beta	Score
0.5 or below	90
0.5 – 0.8	75
0.8 – 1.2	55
1.2 – 1.8	35
Above 1.8	15

Debt-to-Equity ratio

A lower ratio means a cleaner balance sheet and less financial risk.

Debt / Equity	Score
0.3 or below	90
0.3 – 0.8	70
0.8 – 1.5	50
1.5 – 3.0	30
Above 3.0	10

A negative debt-to-equity ratio, which happens when shareholders’ equity itself is negative, meaning liabilities exceed assets, is excluded rather than scored. The signal is skipped and the other two carry the Risk score between them.

Current Ratio

The current ratio compares short-term assets to short-term liabilities. Above 1.0 means the company can cover near-term obligations. Above 2.0 is considered healthy.

Current Ratio	Score
3.0 or above	90
2.0 – 3.0	75
1.5 – 2.0	55
1.0 – 1.5	35
Below 1.0	15

Value: Is the stock attractively priced?

The Value score measures whether a stock is cheap or expensive relative to what the company actually earns and generates. Three valuation multiples are averaged:

Price-to-Earnings (P/E, trailing twelve months)

A lower P/E generally means you're paying less for each dollar of profit. A P/E of zero or below, a loss-making company, is excluded from this signal rather than scored at either end of the scale.

P/E Ratio	Score
10 or below	90
10 – 15	75
15 – 20	60
20 – 30	45
30 – 50	25
Above 50	10

Price-to-Book (P/B)

Book value is the net worth of a company's assets. A lower P/B means you're paying closer to (or less than) what the assets are actually worth on paper.

P/B Ratio	Score
1.0 or below	90
1.0 – 2.0	75
2.0 – 4.0	55
4.0 – 8.0	35
Above 8.0	15

Price-to-Sales (P/S, trailing twelve months)

Useful for companies with low or no profits where P/E is not meaningful. A lower P/S suggests cheaper revenue. As with P/E, a value of zero or below is excluded, and so is a zero-or-negative price-to-book.

P/S Ratio	Score
1.0 or below	90
1.0 – 3.0	70
3.0 – 6.0	50
6.0 – 12.0	30
Above 12.0	10

Quality: Is this a strong business?

The Quality score measures the fundamental health of the underlying business. Four metrics are averaged:

Return on Equity (ROE, trailing twelve months)

ROE	Score
Above 30%	90
20% – 30%	75
10% – 20%	55
0% – 10%	35
0% or below	10

Gross Margin (trailing twelve months)

Gross Margin	Score
Above 60%	90
40% – 60%	75
25% – 40%	55
10% – 25%	35
10% or below	15

Net Margin (trailing twelve months)

Net Margin	Score
Above 20%	90
10% – 20%	75
5% – 10%	55
0% – 5%	35
0% or below	10

Revenue Growth (3-year average)

Revenue Growth (3Y)	Score
Above 20%	90
10% – 20%	75
5% – 10%	55
0% – 5%	35
0% or below	15

The Momentum score captures recent price strength and analyst sentiment. Two signals are averaged:

Analyst Recommendation Ratio

This looks at the balance of buy, hold, and sell ratings from Wall Street analysts.

Buy ratings as % of total	Score
70% or above	90
55% – 70%	75
40% – 55%	55
25% – 40%	35
Below 25%	15

“Buy ratings” includes both Buy and Strong Buy. “Total” includes Strong Buy, Buy, Hold, Sell, and Strong Sell.

12-1 Price Momentum

The stock's total return over the twelve months ending one month ago. Formula: (price one month ago ÷ price twelve months ago) − 1

Twelve-month return (to one month ago)	Score
+30% or more	90
+10% to +30%	75
−5% to +10%	55
−25% to −5%	35
Below −25%	15

The most recent month is left out on purpose. Over one-month horizons prices tend to reverse rather than continue, so including it dilutes the signal with its own opposite. Prices are split-adjusted: a 2-for-1 split halves the quoted price without changing what anyone owns.

This replaced 52-Week Price Position on 2026-09-25. That input measured where a price sits within its range, which is a level rather than a rate of change: a stock flat at its high all year scored 90 with no momentum at all.

A stock with less than twelve months of price history has no twelve-month return. The input is left out rather than assumed, and the score's coverage indicator says so.

Dividend: How attractive is the income?

The Dividend score evaluates the yield on a stock's indicated annual dividend. Scoring peaks in the 3.5–6% range, balancing income attractiveness against the risk that a very high yield reflects financial stress or an unsustainable payout.

Dividend Yield	Score	Notes
0% (no dividend)	5	Not an income stock
Below 1%	25	Minimal income
1% – 2%	50	Modest income
2% – 3.5%	70	Solid income
3.5% – 6%	85	Attractive yield
6% – 9%	65	High yield, elevated risk
9% or above	45	Danger zone, payout may be at risk

ETFs with regular distributions are scored the same way using their indicated annual yield.

How the final score is displayed

Each score shown in the app is the average of its available sub-signals. If a data point is unavailable for a given stock (for example, a pre-revenue company has no P/E), that signal is excluded and the remaining signals carry more weight. If all signals for a dimension are unavailable, the score displays as **, **.

This means scores for smaller, less-covered companies may be based on fewer data points than scores for large-cap, widely-covered stocks.

Scores for a whole portfolio

The Strategy page shows the same five scores for a portfolio rather than one security, under Portfolio Ticker Scores. That number is a different calculation from the one on an instrument page, and worth knowing the shape of before reading it.

It is an average of your holdings' scores weighted by market value, so a $40,000 position moves it four times as far as a $10,000 one. A holding with no score on a given dimension is left out of that dimension's average rather than counted as a zero, which means the five portfolio scores can each be built from a different subset of what you own.

The Risk gauge carries a coverage figure, (N% covered), giving the share of your market value that has a Ticker Score at all. A portfolio score built on 45% coverage is describing less than half of what you hold, and the number is on the screen so you can see that rather than have to infer it.

When are scores updated?

Scores are recalculated nightly at 04:00 UTC for every stock and ETF currently held in your portfolios or saved to your watchlist. The score date shown at the bottom of the card tells you when the most recent calculation ran.

Does Luum tell me when a score changes?

Once a month, and only for something you hold.

On the first morning of each month, your daily brief adds a line if a Ticker Score on one of your holdings has moved 15 points or more over the previous 30 days. It names the instrument, the dimension and the two numbers. Nothing else. At most three movements are named, largest first, and any beyond that are counted rather than listed:

Ticker Scores moved on 2 of your holdings this month: SHOP.TO momentum 54 → 76, RY.TO value 71 → 52. Scores read published fundamentals against fixed thresholds, an input to a decision you make, not a signal to act on.

The threshold is a fixed 15 points rather than "the biggest mover this month". A relative rule would always find something, so you would get the message every month whether or not anything had actually changed.

The wording carries no adjective on purpose. A Risk score of 80 means lower measured risk, so "improved" would be wrong on one of the five dimensions and "rose" would be ambiguous. Two numbers and an arrow are unambiguous on all five.

Watchlist instruments are not included, the line is about what you own. You can also promote it out of the brief into its own notification in Settings, or leave it where it is.

What scores are not

Ticker Scores are a research tool, not financial advice. A high score does not mean a stock will go up. A low score does not mean a stock will go down.

Scores are backward-looking. They reflect reported financials, which may be weeks or quarters old.
Scores take into consideration only a partial view (described above). Many other factors are in play when evaluating a stock.
Scores do not account for macroeconomic conditions, news events, or management quality.
A high Value score on a cheap stock may mean it is cheap for a good reason.
A low Dividend score simply means the stock pays little or no dividend. This is normal for growth companies.

Always use Ticker Scores alongside your own research and in the context of your personal investment goals. If you have questions about a specific score, email us at support@luumwealth.com.

Data sourced from EODHD. Scores are for informational purposes only and do not constitute financial advice.