ps
The ps score is a measure of how fairly, overvaluated od undervaluated a company is in relation to its quoted stock price in secondary markets.
How to use the score
The following table can serve as a reference for the use of this score:
Score value range | Interpretation |
---|---|
from 0 to 5 | Overvaluation: price in relation to its free cash flow |
from 5 to 7 | Fair price: price proportional to its free cash flow |
from 7 to 10 | Undervaluation: low company price in relation to its free cash flow |
Calculation
The score value is based on the relation between the company's free cash flow to equity and its market capitalization factor (see the overview of the price/free cash flow score).