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

70–100 Strong Broad-based strengths across pillars and clean governance.
60–70 Above average Meaningful strengths in several pillars.
50–60 Average Roughly typical for its sector and size.
30–50 Below average Notable weaknesses or caveats worth checking.
0–30 Weak Multiple weak pillars and/or active red flags.

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

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.

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.