Stock Ratings Guide

Fundamental Score · BUY/ACCUMULATE/HOLD/AVOID Verdict · DCF Signal · 3-Year Targets

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Published: April 19, 2026  |  5 min read  |  Platform Guide  |  Top Picks: Free · Full Table: Professional

Multimedia Learning Hub

Master the Ratings page — understand the Fundamental Score, verdicts, DCF signal, and 3-year price targets

What You Will Master

The Ratings page gives every NSE-listed stock a Fundamental Score (0–100) computed nightly from ratio classifications, alongside a DCF-based valuation signal and 3-year price targets. The Top Picks tab (top 20 by score, MCap ≥ 500 Cr) is public. The full table requires a Professional subscription.

What This Guide Covers:

  1. The Fundamental Score — how it is computed from ratio classifications, and what scores mean
  2. The four verdicts — BUY / ACCUMULATE / HOLD / AVOID and what each implies
  3. The DCF signal — Undervalued / Fairly Valued / Overvalued and how it is derived
  4. 3-year targets — Bear, Base, and Bull scenario price projections
  5. Filters and sorting — narrow by verdict, sector, MCap, my holdings, my watchlist
  6. CSV export — download the full filtered dataset for offline analysis

Who This Is For:

  • Stock researchers — quickly identify fundamentally strong stocks before deeper analysis
  • Portfolio managers — filter your own holdings to see which are rated BUY vs AVOID
  • Screener users — cross-reference Screener results with the Ratings score to add a verdict layer
What inputs does the Fundamental Score use?
The Fundamental Score is computed from ratio classifications — each key ratio (ROCE, ROE, OPM, D/E, revenue growth, PAT growth, etc.) is classified as Excellent / Good / Average / Weak. The score aggregates these classifications into a 0–100 composite. Higher score = better all-round fundamentals.
What does a BUY verdict mean on the Ratings page?
BUY means the stock scores in the top tier on fundamental ratio classifications — strong ROCE, low debt, consistent growth, and good profitability margins. It is a quality signal, not a momentum signal. A BUY-rated stock may still be overvalued on DCF — always check both columns.
How does the DCF signal work?
The DCF model computes the implied CAGR baked into the current stock price. If that implied CAGR is lower than the stock's actual historical CAGR, the stock is flagged Undervalued. If higher, it is Overvalued. If roughly in line, it is Fairly Valued.
What are the Bear, Base, and Bull 3-year targets?
Three DCF scenario prices for 3 years out:
Bear — downside scenario (slower growth, margin compression)
Base — most likely scenario (continuation of historical trends)
Bull — upside scenario (accelerated growth, margin expansion)
Comparing CMP to these ranges gives a risk/reward estimate.
What is the difference between the Top Picks tab and the All Ratings tab?
Top Picks is public (no login) — it shows the top 20 stocks by Fundamental Score with MCap ≥ 500 Cr, excluding BSE-only codes and stocks with too few classified ratios. All Ratings requires a Professional subscription — it shows the complete table of all rated NSE stocks with full filter and sort capabilities.
How often is the Ratings data updated?
The Fundamental Score, verdict, and DCF signal are recomputed nightly after market close, using the latest price and fundamental data. The cache is refreshed within 24 hours. This means each morning's Top Picks list reflects the most recent ratio classifications.
Can a stock be rated BUY but also Overvalued on DCF?
Yes — and this is common for high-quality compounders. BUY = strong fundamentals; Overvalued = current price already reflects growth expectations. These are often great businesses trading at a premium. The Ratings page shows both dimensions so you can make the trade-off consciously rather than missing one or the other.
How do you filter the Ratings table for your own portfolio?
Click My Holdings or My Watchlist in the filter bar (requires login). The page reads your holdings and watchlist directly from your Finmagine portfolio and filters the table to show only those stocks. You can then sort by Fundamental Score to immediately see which of your stocks are rated highest.

What Is the Stock Ratings Page?

The Finmagine Stock Ratings page assigns every NSE-listed stock a Fundamental Score (0–100) and a verdict (BUY / ACCUMULATE / HOLD / AVOID) based on nightly ratio classifications. It also provides a DCF valuation signal (Undervalued / Fairly Valued / Overvalued) and 3-year Bear/Base/Bull price targets for every stock.

The page has two access tiers:

Key Concept: The Ratings page answers two distinct questions. The Fundamental Score answers "Is this a high-quality business?" The DCF Signal answers "Is the current price cheap or expensive for that quality?" A BUY score with an Undervalued DCF signal is the ideal combination.

The Fundamental Score and Verdicts

The Fundamental Score (0–100) is computed from ratio classifications. Each key financial ratio — ROCE, ROE, OPM, D/E ratio, revenue growth, PAT growth, and others — is classified as Excellent / Good / Average / Weak. These classifications are then aggregated into a composite score.

BUY
ACCUMULATE
HOLD
AVOID
VerdictScore rangeWhat it means
BUYHigh scoreStrong fundamentals across most dimensions — high ROCE, low debt, consistent growth, good margins. Best long-term compounders typically sit here.
ACCUMULATEAbove averageGood fundamentals with minor weaknesses in 1–2 areas. Worth building a position systematically. Typically improving-quality businesses.
HOLDAverageMixed fundamentals — some strong metrics, some weak. Existing holders should reassess; fresh entries require additional research.
AVOIDLow scoreMultiple weak ratio classifications — high debt, poor profitability, deteriorating growth. Fundamentally weak businesses at current state.

The score is updated nightly after market close. Each morning, the Top Picks list reflects the most recent ratio classifications from the previous night's data run.

The DCF Signal and 3-Year Targets

Alongside the Fundamental Score, each stock has a DCF-based valuation signal and three 3-year price targets.

DCF Signal

Undervalued
Fairly Valued
Overvalued

The DCF model works by asking: what annual growth rate is the current stock price implying? This implied CAGR is then compared to the stock's actual historical CAGR:

3-Year Price Targets

Three scenario prices are shown for each stock 3 years out:

Compare the Current Market Price (CMP) to all three scenarios to estimate the risk/reward: if CMP is above the Base target, the stock may have limited upside. If CMP is below the Bear target, something structural may be changing.

DCF targets are not forecasts

DCF models require growth assumptions. The Bear/Base/Bull targets are scenario outputs — they reflect what the stock would be worth under different growth paths, not predictions of what will happen. Use them as a valuation frame, not a price prediction.

Filters, Sorting, and Export

The All Ratings tab (Professional) offers a full set of filters:

Sort by: Fundamental Score (default), ROCE, or Market Cap. Click any column header to re-sort.

The CSV Export button downloads the current filtered view — symbol, company, sector, score, verdict, DCF signal, CMP, all three targets, PE, ROCE, D/E, OPM, MCap, risk level — for offline analysis in Excel or Sheets.

5-Step Workflow

1

Start with Top Picks (no login needed)

Open finmagine.com/ratings/. The Top Picks tab shows the top 20 fundamentally strongest stocks with MCap ≥ ₹500 Cr. This is a quick signal of what Finmagine's analysis considers the highest-quality businesses right now.

2

Filter by verdict (Professional)

In All Ratings, click the BUY chip to show only BUY-rated stocks. Add a sector filter to narrow to your research area. This gives a shortlist of fundamentally strong names in any given sector.

3

Check the DCF signal alongside the verdict

Look for BUY + Undervalued combinations — strong fundamentals at a price that doesn't fully reflect them. These are the highest-conviction candidates for deeper research.

4

Check the 3-year targets vs CMP

Compare the current market price to the Base target. If CMP is significantly below Base, the stock may offer upside. If CMP exceeds the Bull target, the market is pricing in more optimism than even the bull case assumes.

5

Deep-dive on shortlisted stocks

Click any stock symbol to open the full Finmagine /stock/ page — complete financial tabs, Scorecard, AI Advisor, forensics, and valuation analysis.

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