Sector-Specific Equity Scoring

9 algorithms in Fundamental Analysis and Valuation · 9 with asserted arithmetic.

In this family#

1. Bank Fundamental Score verified

   Scores a bank on eight banded prudential and profitability components, then subtracts 12.5 points for each declared minimum that the corresponding ratio falls below. Reports the pre-penalty score, the breach list and the penalty alongside the final score.

   bankFundamentalScore(data)
2. Insurance Fundamental Score verified

   Scores a non-life insurer on seven banded solvency, underwriting and profitability components, then subtracts 20 points for each of the SCR and MCR coverage ratios that sits below 1.

   insuranceFundamentalScore(data)
3. REIT Fundamental Score verified

   Derives an AFFO proxy from NAREIT FFO by subtracting recurring capex and the straight-line rent adjustment, then scores distribution coverage, leverage, interest coverage, occupancy, same-store NOI growth and liquidity as six weighted bands. Carries no penalty term.

   reitFundamentalScore(data)
4. Utility Fundamental Score verified

   Scores a rate-regulated electric utility on seven weighted bands, two of which are two-sided: the earned-versus-allowed ROE gap and rate-base growth both score highest near a target and fall away in either direction. Carries no penalty term.

   utilityFundamentalScore(data)
5. Early-Stage Liquidity and Runway Score verified

   Measures runway from observed cash history rather than a forecast: it nets available liquidity against near-term obligations and a minimum operating balance, takes the average burn over the last six months, and compares the latest three months of burn with the three before them. Scores four weighted bands and reports the funding window separately.

   earlyStageLiquidityAndRunwayScore(data)
6. Cyclical and Commodity-Cycle Normalization verified

   Normalizes a commodity producer to mid-cycle by taking the median of its price, unit-cost and volume histories, rebuilding revenue and EBITDA from those medians less fixed costs, and scoring the resulting margin, leverage, free-cash-flow consistency and where the current price sits in its own history.

   cyclicalAndCommodityCycleNormalization(data)
7. Holding-Company Look-Through Score verified

   Looks through a holding company to its subsidiaries by scaling each holding's equity value, debt and dividends by the parent's ownership ratio, then bridges to parent NAV using parent cash, debt and other liabilities. Scores the NAV buffer, look-through leverage, dividend cover of parent interest, concentration, valuation freshness and listed coverage.

   holdingCompanyLookThroughScore(data)
8. Sector-Specific Weight Calibration verified

   Fits component weights by projected gradient descent on a logistic model of the labelled outcome, keeping the weights nonnegative and summing to 1 at every step and pulling them back toward the declared base weights with a ridge term. Splits the history in time and keeps the fitted weights only when they beat the base weights on the held-out Brier score.

   sectorSpecificWeightCalibration(data)
9. Unsupported-Scope and Coverage Decision verified

   Decides whether a sector model may be used at all. It refuses an unknown sector or a mismatched framework outright, and otherwise audits each required field against the as-of date, classifying it as available, missing, stale or dated in the future before comparing coverage with the declared minimum.

   unsupportedScopeAndCoverageDecision(data)

What they share#

Every topic here is a record-transform, so once you have called one the rest follow the same shape. Import paths differ only in the final segment:

import { bankFundamentalScore } from "fintech-algorithms/fundamental-analysis-and-valuation/sector-specific-equity-scoring/bank-fundamental-score";
import { insuranceFundamentalScore } from "fintech-algorithms/fundamental-analysis-and-valuation/sector-specific-equity-scoring/insurance-fundamental-score";

Read them in the order above — the sequence is pedagogical, not alphabetical.

Where this sits#

Fundamental Analysis and Valuation collects 52 algorithms across 6 families. For the concept behind this family rather than the call signatures, see the concept guides.