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feat: info text for the rating #68

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shivamsouravjha opened this issue Oct 21, 2024 · 2 comments · May be fixed by #69
Open

feat: info text for the rating #68

shivamsouravjha opened this issue Oct 21, 2024 · 2 comments · May be fixed by #69

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@shivamsouravjha
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  • since we have our own ratings we should have an info project about how we rate a stock
  • in stock page as well as the home page we can put an icon and link to a page where we add this description
Stock Rating Algorithm Overview
Our stock rating algorithm provides a comprehensive score by analyzing individual stock metrics, trends over time, and comparisons with peer companies. The algorithm uses multiple factors to evaluate a stock’s performance, including financial metrics, trends in quarterly results, and comparisons against industry peers.

Here’s how the scoring is computed:

Trend Analysis (40% Weight):

The algorithm assesses the stock’s quarterly performance by comparing consecutive quarters.
Each improvement or decline in key metrics (like sales or profit) adjusts the trend score accordingly.
This ensures that positive trends over time contribute to a higher score.
Peer Comparison (50% Weight):

The stock is evaluated against peer companies using metrics like P/E ratio, market cap, dividend yield, ROCE, sales, and profit.
A stock earns points by outperforming peers or staying competitive in these metrics.
An additional check compares the stock’s metrics with the median of the peers, further refining the score.
Scoring Logic:

The final score is a weighted combination of trend analysis and peer comparison results.
Each component is normalized to ensure consistency across different datasets and company sizes.
The score is rounded to two decimal places for readability.
This data-driven approach helps provide a balanced rating by combining historical performance with real-time peer benchmarking, making it a valuable tool for investors seeking reliable insights.

@raviutsav
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I want to work on this.
It would be a good idea to add this link in the footer with the text like 'Click here to know about our rating algorithm' or something like that within the 'about us' section.

@shivamsouravjha
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I'm thinking that the start symbol (which follows the rating can have this), a small preview + a link to detailed explanation can be a good way

@ayesparshh ayesparshh linked a pull request Oct 22, 2024 that will close this issue
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