Overall Explainable Stock Score

Install and import#

bash

npm install fintech-algorithms

import { overallExplainableStockScore } from "fintech-algorithms/fundamental-analysis-and-valuation/integrated-equity-scoring/overall-explainable-stock-score";

Signature#

overallExplainableStockScore(data)

Blends the six pillar scores into a single overall stock score with fixed weights and keeps every pillar's contribution visible.

Parameters#

Name	Type	Notes
`data`	`{ financial_health_score: number; earnings_quality_score: number; dividend_safety_score: number; balance_sheet_resilience_score: number; distress_safety_score: number; valuation_score: number }`	The six pillar scores, each a finite number between 0 and 100. `financial_health_score`, `earnings_quality_score`, `dividend_safety_score` and `balance_sheet_resilience_score` are the like-named keys emitted by the composites earlier in this family; `distress_safety_score` and `valuation_score` are supplied by the caller.

Returns#

{ state: string; method: string; components: Record<string, number>; weights: Record<string, number>; contributions: Record<string, number>; overall_stock_score: number; band: string; coverage: number }

components echoes the six inputs and weights gives 0.24 to financial_health_score, 0.18 each to earnings_quality_score and balance_sheet_resilience_score, 0.16 to distress_safety_score, 0.14 to dividend_safety_score and 0.10 to valuation_score. contributions is each score times its weight and overall_stock_score their sum. band is strong at 75 or above, watch at 50 or above, otherwise weak; coverage is always 1.

Errors#

When any pillar score is not a finite number — throws TypeError
When any pillar score is below 0 or above 100 — throws RangeError

Complexity: time O(1), space O(1).

Worked example#

executed Captured by running this function on the input its own test provides. Real output of real code — but not asserted against a published figure.

Input#

data

{
  "financial_health_score": 78,
  "earnings_quality_score": 73,
  "dividend_safety_score": 87,
  "balance_sheet_resilience_score": 75,
  "distress_safety_score": 77,
  "valuation_score": 64
}

Call#

overallExplainableStockScore(data)

Returns#

object with 8 fields: state, method, components, weights, contributions, overall_stock_score, band, coverage

{
  "state": "calculated",
  "method": "explainable-six-pillar-stock-score",
  "components": {
    "financial_health_score": 78,
    "earnings_quality_score": 73,
    "dividend_safety_score": 87,
    "balance_sheet_resilience_score": 75,
    "distress_safety_score": 77,
    "valuation_score": 64
  },
  "weights": {
    "financial_health_score": 0.24,
    "earnings_quality_score": 0.18,
    "dividend_safety_score": 0.14,
    "balance_sheet_resilience_score": 0.18,
    "distress_safety_score": 0.16,
    "valuation_score": 0.1
  },
  "contributions": {
    "financial_health_score": 18.72,
    "earnings_quality_score": 13.139999999999999,
    "dividend_safety_score": 12.180000000000001,
    "balance_sheet_resilience_score": 13.5,
    "distress_safety_score": 12.32,
    "valuation_score": 6.4
  },
  "overall_stock_score": 76.26,
  "band": "strong",
  "coverage": 1
}

Other exports#

This module also exports calculate, pointInTimeStockScoringInputAssembly, stockScoringPeerCohortResolver, fundamentalMetricDirectionAndPeerNormalization, modelApplicabilityAndVariantRouter, accountingFinancialHealthComposite, earningsQualityComposite, dividendSafetyScore, balanceSheetResilienceScore, distressModelEnsemble, crossModelConflictAndDoubleCountingResolver, scoreConfidenceMissingDataPenaltyAndAbstention, marketWideStockScreeningAndRanking, stockScoreHistoryMigrationAndChangeAttribution. Every module additionally exports run as an alias of its primary function, and a meta object carrying its catalog id, domain, family, shape and article URL.