Every POFIT Score is the output of the same six-pillar framework. The weights are published. The inputs are auditable. There is no black box.
How fast is the business compounding — and can it keep going?
A software company growing revenue 22% over 5 years with expanding operating margins scores in the top decile.
Are we paying a fair price relative to intrinsic value?
A quality compounder trading 25% below its 10Y median P/E with a 30% DCF margin of safety scores highly here.
How good is the business — measured by returns on capital?
A consumer brand with 25%+ ROCE for a decade and 90%+ FCF conversion is Quality-tier.
Can the business survive — and thrive through — a downturn?
Net cash on balance sheet, 12x interest cover, and low working-capital intensity earns a full score.
The qualitative moat — brand, network, switching cost, scale.
A category leader with founder-led management and a 15Y history of value-accretive M&A rates highly.
Is the market beginning to recognize the story?
Consistent upward EPS revisions and improving relative strength versus the index add a modest tilt.
Each pillar is scored 0–100 on absolute and relative bases. The pillar scores are weighted and summed to produce the POFIT Score. Tiers are assigned by score band:
POFIT Score = 0.30 × Growth + 0.20 × Valuation + 0.20 × Quality + 0.15 × Financial Strength + 0.10 × Business Quality + 0.05 × Momentum
Pillar scores are normalised across our full coverage universe so scores stay comparable across sectors and geographies.
