Dynamic CT-RANK Methodology
The CT-RANK is a proprietary index (from 0 to 100) for an immediate assessment of a stock's quality. Our new dynamic version combines the soundness of financial data with the market's "pulse" (price, volume, and volatility) to provide a daily and responsive evaluation.
The Four Pillars of the CT-RANK
Our model is based on four pillars, each with a specific weight on the final score.
Measures how "cheap" a stock is using the P/E ratio (TTM). A low P/E (green) is better.
Score = 100 - (P/E * 2.5)Evaluates the efficiency in generating profits using the Return on Equity (ROE, TTM). A high ROE (green) is better.
Score = ROE * 400Measures financial soundness using the Debt-to-Equity (D/E). A low D/E (green) is better.
Score = 100 - (D/E Ratio * 50)Measures the strength and stability of a stock's recent market trend. This pillar makes the rank dynamic and responsive to daily changes.
- Price Momentum (40%): Price performance over the last 90 days.
- Volatility (30%): Price stability based on the standard deviation of 60-day returns. Less volatility is better.
- Volume (30%): Investor interest, measured by comparing the 20-day average volume with the 60-day average.
- **Directional Filter:** A 30% penalty is applied to the momentum score if the current price is below its 200-day moving average, reflecting a long-term structural weakness.
Final Score Calculation
The final CT-RANK is the weighted average of the four scores:
CT-RANK = (Valuation * 0.35) + (Profitability * 0.35) + (Fin. Health * 0.10) + (Momentum * 0.20)A Living Indicator
Thanks to the inclusion of Market Momentum, the CT-RANK is now recalculated every day for every stock with sufficient data. This allows the historical chart to show a continuous and fluid line, reflecting how market perception combines with fundamental data over time.