# Holding-Company Look-Through Score

`D18-F10-A07` · Fundamental Analysis and Valuation → Sector-Specific Equity Scoring · archetype `record-transform` · difficulty 5/5 · verification **verified**

Full page: https://docs.thefintechbuilder.com/fundamental-analysis-and-valuation/sector-specific-equity-scoring/holding-company-look-through-score/
Agent skill: `npx skills add IslamBaraka90/Fintech-Algorithms-Library` — https://docs.thefintechbuilder.com/guides/agent-skill/

## Install and import

```bash
npm install fintech-algorithms
```

```ts
import { holdingCompanyLookThroughScore } from "fintech-algorithms/fundamental-analysis-and-valuation/sector-specific-equity-scoring/holding-company-look-through-score";
```

## Signature

```ts
holdingCompanyLookThroughScore(data)
```

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.

## Parameters

| Name | Type | Required | Notes |
| --- | --- | --- | --- |
| `data` | `RecordValue` | yes | A plain object. `framework` must be the string `holding-company-lookthrough-teaching-v1`. `weights` must be an object holding exactly `nav_buffer`, `lookthrough_leverage`, `parent_coverage`, `diversification`, `freshness` and `listed_coverage`. `holdings` must be an array of at least two objects, each with a unique nonempty `id`, an `ownership_ratio` in (0, 1], nonnegative `equity_value`, `debt` and `dividends_to_parent`, and boolean `listed` and `stale` flags. `parent_cash`, `parent_debt` and `other_parent_liabilities` must be nonnegative and `parent_interest_expense` strictly positive. `parent_market_cap` is optional; when present it must be nonnegative. · min_holdings: 2 |

## Returns

`{ state: string; method: string; holding_ledger: Array<{ id: string; ownership_ratio: number; attributable_equity_value: number; attributable_debt: number; attributable_dividends: number; listed: boolean; stale: boolean }>; gross_asset_value: number; net_asset_value: number; attributable_subsidiary_debt: number; lookthrough_leverage: number; parent_interest_coverage: number; concentration_hhi: number; fresh_value_coverage: number; listed_value_coverage: number; discount_to_nav: number | null; component_scores: Record<string, number>; weights: Record<string, number>; look_through_score: number; coverage_ratio: number; reason: string }`

`holding_ledger` restates each holding with its ownership-scaled equity value, debt and dividends. `gross_asset_value` is the summed attributable stake plus `parent_cash`; `net_asset_value` deducts `parent_debt` and `other_parent_liabilities`. `lookthrough_leverage` divides parent plus attributable subsidiary debt by the look-through enterprise value, and is 1 when that value is not positive. `parent_interest_coverage` divides attributable dividends by `parent_interest_expense`. `concentration_hhi` is the sum of squared value shares, and `fresh_value_coverage` and `listed_value_coverage` are the value shares of holdings not flagged stale and flagged listed. `discount_to_nav` is 1 less market cap over NAV, or null when `parent_market_cap` is absent or NAV is not positive. `component_scores` holds six band scores on a 0-100 scale and `look_through_score` is their weighted sum. `state` is `nonpositive-nav-review` when NAV is zero or negative, otherwise the band of the score: `strong-review-band` at 75 or more, `mixed-review-band` at 50 or more, `weak-review-band` below that. `method` is `holding-company-lookthrough-score-v1` and `coverage_ratio` is 1.

## Errors

- When data is not a plain object, or a holding entry is not an object — throws TypeError
- When a holding id is not a nonempty string, or listed or stale is not a boolean — throws TypeError
- When framework is not holding-company-lookthrough-teaching-v1 — throws RangeError
- When holdings is not an array of at least two records — throws RangeError
- When two holdings share an id — throws RangeError
- When an ownership_ratio is outside (0, 1] — throws RangeError
- When gross asset value is not positive — throws RangeError
- When weights does not hold exactly the six component names, or its values do not sum to 1 within 1e-9 — throws RangeError
- When a parent balance required to be nonnegative is negative, or parent_interest_expense is not positive — throws RangeError

## Complexity

Time `O(n)`, space `O(n)`.

## Worked example

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`:

```json
{
  "framework": "holding-company-lookthrough-teaching-v1",
  "holdings": [
    {
      "id": "listed-bank",
      "ownership_ratio": 0.62,
      "equity_value": 920,
      "debt": 540,
      "dividends_to_parent": 32,
      "listed": true,
      "stale": false
    },
    {
      "id": "private-logistics",
      "ownership_ratio": 0.8,
      "equity_value": 410,
      "debt": 180,
      "dividends_to_parent": 18,
      "listed": false,
      "stale": false
    },
    {
      "id": "listed-utility",
      "ownership_ratio": 0.35,
      "equity_value": 680,
      "debt": 390,
      "dividends_to_parent": 21,
      "listed": true,
      "stale": true
    }
  ],
  "parent_cash": 95,
  "parent_debt": 260,
  "other_parent_liabilities": 45,
  "parent_interest_expense": 24,
  "parent_market_cap": 760,
  "weights": {
    "nav_buffer": 0.22,
    "lookthrough_leverage": 0.22,
    "parent_coverage": 0.18,
    "diversification": 0.14,
    "freshness": 0.12,
    "listed_coverage": 0.12
  }
}
```

### Call

```ts
holdingCompanyLookThroughScore(data)
```

### Returns

object with 17 fields: state, method, holding_ledger, gross_asset_value, net_asset_value, attributable_subsidiary_debt, lookthrough_leverage, parent_interest_coverage, …

```json
{
  "state": "mixed-review-band",
  "method": "holding-company-lookthrough-score-v1",
  "holding_ledger": [
    {
      "id": "listed-bank",
      "ownership_ratio": 0.62,
      "attributable_equity_value": 570.4,
      "attributable_debt": 334.8,
      "attributable_dividends": 19.84,
      "listed": true,
      "stale": false
    },
    {
      "id": "private-logistics",
      "ownership_ratio": 0.8,
      "attributable_equity_value": 328,
      "attributable_debt": 144,
      "attributable_dividends": 14.4,
      "listed": false,
      "stale": false
    },
    {
      "id": "listed-utility",
      "ownership_ratio": 0.35,
      "attributable_equity_value": 237.99999999999997,
      "attributable_debt": 136.5,
      "attributable_dividends": 7.35,
      "listed": true,
      "stale": true
    }
  ],
  "gross_asset_value": 1231.3999999999999,
  "net_asset_value": 926.3999999999999,
  "attributable_subsidiary_debt": 615.3,
  "lookthrough_leverage": 0.47398061406833814,
  "parent_interest_coverage": 1.7329166666666669,
  "concentration_hhi": 0.3791097100943457,
  "fresh_value_coverage": 0.7905667018655403,
  "listed_value_coverage": 0.7113692361844421,
  "discount_to_nav": 0.17962003454231423,
  "component_scores": {
    "nav_buffer": 92.05240647501488,
    "lookthrough_leverage": 39.115419095924864,
    "parent_coverage": 24.43055555555556,
    "diversification": 71.30895331236762,
    "freshness": 47.64167546638509,
    "listed_coverage": 58.767033740634595
  },
  "weights": {
    "nav_buffer": 0.22,
    "lookthrough_leverage": 0.22,
    "parent_coverage": 0.18,
    "diversification": 0.14,
    "freshness": 0.12,
    "listed_coverage": 0.12
  }
}
```

Showing 14 of 17 fields.

## Other exports

`calculate`, `bankFundamentalScore`, `insuranceFundamentalScore`, `reitFundamentalScore`, `utilityFundamentalScore`, `earlyStageLiquidityAndRunwayScore`, `cyclicalAndCommodityCycleNormalization`, `sectorSpecificWeightCalibration`, `unsupportedScopeAndCoverageDecision`. 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.

## Verification and provenance

Tier: **verified** (via D).

The worked example below is the figure published in this algorithm's article, replayed and asserted by the test suite on every build. The arithmetic cannot drift without the build failing.

Both tiers guarantee the signature. Full explanation: https://docs.thefintechbuilder.com/guides/verification/

Generated from the docs.json payload shipped inside fintech-algorithms@0.13.0.
The signature and parameter list are checked against the compiled implementation at build time,
so a description that contradicts the code fails the build rather than reaching this file.

## Links

- Article (how it works, step by step): https://thefintechbuilder.com/fundamental-analysis-and-valuation/sector-specific-equity-scoring/holding-company-look-through-score/
- Implementation source: https://github.com/IslamBaraka90/Fintech-Algorithms-Library/blob/main/src/fundamental-analysis-and-valuation/sector-specific-equity-scoring/holding-company-look-through-score/impl.ts
- Package on npm: https://www.npmjs.com/package/fintech-algorithms
- Domain index for agents: https://docs.thefintechbuilder.com/fundamental-analysis-and-valuation/llms.txt