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§ Methodology terms

Scorecard

A 9-category weighted business-quality framework (0-100) covering growth, profitability, balance sheet, capital allocation, moat, management, risk, and valuation.

Our scorecard is a nine-category, 0–100 quality assessment that captures business durability, capital-allocation discipline, and valuation attractiveness in a single transparent framework. The categories are business quality, growth durability, profitability, balance sheet, capital allocation, moat durability, management quality, risk profile, and valuation, with archetype-specific weights (growth and quality categories are weighted 1.25x for hyper-growth archetypes; balance sheet is weighted 0.75x). Scoring is anchored to specific evidence — a 9/10 in moat durability requires a documented economic-profit spread and a reasoned explanation of why it should persist. The scorecard cross-checks against the six-factor decision overlay (which weights valuation at 40% and risk at 15%): if the two diverge by more than 12 points on a 100-point basis, the report flags the discrepancy and re-audits assumptions. The scorecard is not the rating — the rating combines scorecard, six-factor overlay, fair-value gap, and quality-gate status — but it is the most direct quality summary in the report.

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