Open methodology

How the Tapetide Score Works

The Tapetide Score is a standardized, data-driven rating from 0 to 100 that summarizes a stock’s overall strength across six factor pillars and a governance risk check. It is pure data and math — reproducible, sector-relative, and built to be compared across stocks and over time.

The principles behind the score

Standardized and comparable

Every metric is measured against a fixed, versioned reference rather than today’s shifting market, so two stocks scored against the same reference are directly comparable. The reference is frozen and published with each score, so any number can be traced to the exact calibration behind it.

Sector-relative and fair

A bank, an FMCG company and a manufacturer are each scored against their own sector’s history — using financial templates suited to how each type of business actually works — so they can be compared fairly.

Honest about its own limits

Fundamental inputs are the latest reported figures, not the figures as they stood on a past date, so score history is best read as a trend rather than as a replayable backtest. We publish that caveat rather than claim a precision the model does not have.

Deterministic and reproducible

The score is pure data and math — not an AI opinion. The same inputs always produce exactly the same score, and every score is stamped with its formula and reference version for audit.

Red flags can only pull down

Governance risks — surveillance flags, credit downgrades, promoter pledge, insider selling, audit qualifications — act as a penalty that can reduce or hard-cap the score. Strong fundamentals can never paper over a serious red flag.

Stable, not jumpy

The score is smoothed and held within a small band, so it reflects real changes in the business rather than day-to-day market noise.

The six factor pillars

Six pillars add up to the core score. A seventh — the governance risk overlay — can only subtract.

Quality

~25%

Capital efficiency (return on capital and equity), profitability margins, earnings quality and how durable those margins have been. Quality is weighted highest because it is the most persistent driver of long-run returns.

Valuation

~20%

How cheap or expensive the stock is — both versus its own sector’s history and versus its own past. Extreme cheapness on a fragile balance sheet is treated as a value trap, not a bargain.

Growth

~15%

Sales and profit trajectory over multiple years, plus how consistent that growth has been. Lumpy, one-off growth scores lower than steady compounding.

Financial Health

~15%

Solvency and resilience — leverage, interest coverage, distress indicators and liquidity. Strong balance sheets add points; severe distress is handled by the risk overlay below.

Momentum

~15%

Medium-term price trend — six-month return combined with how far the price sits above or below its 200-day moving average, on corporate-action-adjusted prices so splits and bonuses never distort the signal.

Ownership

~10%

The direction of institutional (FII/DII) and promoter holding changes — who is accumulating or distributing the stock.

Governance & Risk overlay

penalty only

Surveillance flags, credit-rating downgrades, promoter share pledges, insider selling and audit qualifications act as a penalty multiplier that can reduce — or hard-cap — the score. This is the trust layer: strong fundamentals can never mask a serious red flag.

Reading the score

66 and above Strong Broad-based strengths across pillars and clean governance. Roughly 3% of covered stocks in recent runs.
55 to under 66 Good Meaningful strengths in several pillars. Roughly 28%.
45 to under 55 Average Roughly typical for its sector and size. Roughly 40%.
37 to under 45 Weak Notable weaknesses or caveats worth checking. Roughly 19%.
Below 37 Poor Multiple weak pillars and/or active red flags. Roughly 9%.

Fully open, fully auditable

The calculation methodology is fully open source. Every pillar weight, metric definition, normalization formula, eligibility rule, governance penalty and hard cap is published — along with how we test whether a factor actually predicts anything, and the results when it does not. A rating you cannot audit is a rating you should not trust, so we publish enough for you to recompute it yourself and to tell us where we are wrong.

What stays private is our data infrastructure — how inputs are ingested, validated and stored. That is plumbing, not methodology, and none of it is needed to understand or verify the score.

Read the full methodology on GitHub →

Frequently asked questions

What is the Tapetide Score?
The Tapetide Score is a standardized 0–100 rating for Indian stocks, computed purely from numeric data — fundamentals, prices, ownership and governance. It combines six factor pillars (Quality, Valuation, Growth, Financial Health, Momentum, Ownership) with a governance risk overlay into a single comparable number.
Is the Tapetide Score generated by an AI or language model?
No. The score is fully data-driven and deterministic — it is computed by a fixed mathematical model from numeric data. The same inputs always produce the same score. There is no language-model opinion involved.
Does a high Tapetide Score mean I should buy the stock?
No. The score is decision-support, not investment advice. It summarizes the past and current evidence on a company’s quality, value, growth, health, momentum, ownership and governance. It is not a price forecast. Tapetide is not a SEBI-registered research analyst or investment adviser.
How is a bank scored fairly against a manufacturing company?
Different business types use different financial templates — banks and NBFCs are scored on metrics suited to financials, and every stock is normalized against its own sector’s history. Because each score maps to the same 0–100 scale relative to sector, a 72 bank and a 72 FMCG company both mean “strong relative to peers.”
Why do some stocks show “Insufficient data” instead of a score?
To publish a score we require enough numeric coverage across the required pillars. If a stock — often a small or newly listed company — lacks enough data, we show “Insufficient data” rather than a misleading number.
How often is the score updated?
Once per trading day. Scores are recomputed each evening after the day’s market data and fundamentals are consolidated, typically around 19:45 IST, and are stamped with the latest completed trading date — so weekends and market holidays reuse the previous session’s score rather than inventing one. Around 4,500 stocks are scored per run. Smoothing keeps the published score stable against day-to-day noise: a typical day moves the average stock by well under a point.
What happens if a daily update fails partway through?
A run that covers materially fewer stocks than the recent norm is refused rather than published, and rankings fall back to the last complete day. A partial run can never be served as if it were the full market.
Can I see how a stock’s score has changed over time?
Yes. Each stock page shows its Tapetide Score history. Read it as a trend: fundamental inputs are the latest reported figures rather than the figures as they stood on each past date, so the history is not a replayable point-in-time backtest.
Where can I read the full calculation methodology?
The complete methodology is open source at https://github.com/Tapetide-hq/tapetide-score — every pillar weight, metric definition, normalization formula, eligibility rule and governance threshold is published, along with how we validate factors and the candidate factors we tested and rejected. Expert contributions and proposals for improving the score are welcome.

The Tapetide Score is data analysis and decision-support only — it is not investment advice. Tapetide is not a SEBI-registered research analyst or investment adviser. Consult a qualified advisor before investing.