Metrics | GOOD | Average | BAD |
Quality | >55 | 35-55 | <35 |
Valuation | >50 | 30-50 | <30 |
Technicals | >60 | 35-60 | <35 |
QVT stands for Quality, Valuation, and Technicals. These are the different parameters set using the fundamentals, technicals, and historical performance of each individual stock. Generally, the scores are assigned between 0 and 100, where a score of over 50 is considered good and a score of under 30 is considered bad. A score between 30 and 50 is considered average or neutral.
This feature helps investors quickly understand a stock’s financial quality, valuation attractiveness, and technical strength in one place.
| Data Item | What It Represents |
|---|---|
| Quality | Indicates good and consistent financial performance, including stable revenues, profits, cash flows, and low debt |
| Valuation | Indicates whether the stock is competitively priced based on current P/E, P/BV, and share price |
| Technicals | Indicates whether the stock is seeing buyer demand and is bullish across its technical indicators compared to the rest of the stock universe |
| Metrics | Good | Average | Bad |
|---|---|---|---|
| Quality | >55 | 35-55 | <35 |
| Valuation | >50 | 30-50 | <30 |
| Technicals | >60 | 35-60 | <35 |
For instance, Mr. Sid wishes to invest in Coal India equity. However, he is still determining when to invest. The QVT metrics of Coal India are as below:
Overall, Coal India is a stock with good fundamentals and valuation but with moderate technicals. Based on these parameters, Mr. Sid can decide whether to invest in Coal India.
| Scenario | Explanation |
|---|---|
| A stock has a high Quality score but a low Technical score | This may mean the company is fundamentally strong, but the stock price trend is currently weak or neutral. |
| A stock has a high Valuation score | This indicates the stock may be competitively priced based on FYERS’ valuation parameters. |
| A stock has average scores across all three parameters | This generally suggests the stock is neither strongly attractive nor weak across QVT factors. |