🗣The IOFin F-Score is a discrete score between zero and ten that reflects ten criteria used to determine the strength of a firm's financial position. 🗣It is used to determine the best value stocks, with ten being the best and zero being the worst.
The IOFin F-Score broken down into the following categories:
Profitability Equity, cash flow, liquidity, and source of funds Operating efficiency
Criteria Include: Price to book (P/B) lower than 3 (1 point) Debt to Equity (D/E) lower than 0.5 (1 point) Price to FreeCashFlow (P/FCF) equal to or lower than 20 (1 point) Peg Ratio lower than 1 (1 point) Sustainable Growth Rate higher than 0.3 (1 point) Return on Assets (ROIC) higher than 0.07 (1 point) Return on Equity (ROE) higher than 0.3 (1 point) EnterpriseValue/Ebitda lower than 10 (1 point) Quick Ratio equal to or higher than 1 (1 point) Operating Margin higher than 0.15 (1 point)