Points count only for met rules. In brackets: possible points.
- No financials, real estate or utilities (metrics not comparable there)met0
- Cheaper than the industry (P/E below sector median)met+2
- Assets cheaper than the industry (P/B below sector median)not metpossible +1
- Cheap from an acquirer's view (EV/EBIT below 8, incl. net-cash cases)met+2
- Moderately valued (EV/EBIT 8–12)not metpossible +1
- Low P/E (between 1 and 12)met+1
- Below the book-value mark (P/B between 0.1 and 1.2)not metpossible +1
- Cheap relative to earnings growth (PEG below 1)met+1
- Comfortable liquidity (current ratio ≥ 2)met+1
- Low leverage (debt to equity below 0.5)met+1
- Net loss over the last twelve monthsnot met0
- Earnings collapse (more than 20% below prior year)not met0
- Revenue shrinking (more than 5% below prior year)not met0
- Negative free cash flownot met0
- High leverage (debt to equity of 2 or more)not met0