A stock grade you can actually see the workings of.

Sector-relative, so the comparison is fair

The Grade ranks each company against its sector peers, not the whole market, so a bank is judged against banks and a chipmaker against chipmakers. It combines four pillars — quality, value, momentum and growth — into a single 0–100 read.

Engineered to be stable and honest

The method uses percentile ranking with winsorization to tame outliers, hysteresis so grades don’t flip on noise, and a bottom-decile disqualifier — the kind of care that separates a real score from a marketing number. The full methodology is versioned and published inside the app, and summarized below.

Descriptive, not a forecast

The Grade describes how a company screens today across its pillars. It is explicitly not a price prediction or a buy signal — it’s a transparent summary to start research from, with every input open to inspection.

How is the Tradune Grade calculated?

1. 1

   Seventeen inputs in four pillars

   Quality: return on equity, return on assets, gross margin, operating margin, debt-to-equity and current ratio. Value: free-cash-flow yield, EV/EBITDA, price-to-book, price-to-sales and forward P/E. Momentum: 12-month price change, distance from the 200-day and 50-day moving averages, and distance from the 52-week high. Growth: year-over-year revenue and earnings growth. Ratios that are not meaningful are left out — negative equity, negative valuation multiples, and for banks and insurers the current ratio, EV/EBITDA and free-cash-flow yield.

2. 2

   Ranked within the sector

   Each input is clamped at its 5th and 95th percentiles, then ranked as a percentile among that sector’s graded companies, with “lower is better” ratios inverted first. When a sector has too few graded companies, the stock is ranked against the full rated universe instead and the card says so.

3. 3

   Pillar scores, then a weighted composite

   A pillar score is the average of its available input percentiles, and needs at least half of its inputs; otherwise the pillar is n/a. The composite weights the pillars Quality 30%, Value 30%, Momentum 25% and Growth 15%, renormalized over the pillars that exist. A missing input is never filled in with an average.

4. 4

   A letter from the composite’s rank

   The letter (A+ to F) comes from where the composite ranks among the sector’s peers. Sectors with fewer than 40 graded companies get five coarse letters (A to F, no plus or minus). A letter changes only when the composite’s percentile rank moves 3 points past a boundary, so it does not flicker on noise.

5. 5

   Safety rules

   If any available pillar score ranks in the bottom 10% of its sector, the letter is capped at C. If a pillar’s percentile jumps more than 30 points in one recompute, the previous grade is held for one cycle and flagged until the new level is confirmed. Grades recompute after the roughly daily data refresh; they are not real-time.

What does the composite look like for one stock?

A pillar score is the average of that pillar’s input percentiles within the sector, so 80 means its inputs ranked high on average.

If Growth were unavailable, the other three weights (85% in total) would be rescaled to 100%: (24.0 + 12.0 + 17.5) ÷ 0.85 = 62.9, and the grade would carry a partial-coverage flag.

If the Value pillar score had instead ranked in the bottom 10% of the sector’s Value scores, the letter would be capped at C however high the composite ranked. The grade describes reported data against peers; it is not a forecast or a recommendation.