🏆 The Finmagine™ Scorecard

One Number That Summarises a Company Across Five Investment Dimensions — 0 to 10, Fully Explained

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Published 6 April 2026  ·  8 min read  ·  Finmagine Research Team
📚 Scorecard Tab — Learning Hub
Understand the Finmagine™ five-dimension scoring framework

After reading this guide you will be able to:

  • Interpret the overall Finmagine™ score — what 7.4 or 4.1 actually means
  • Know the five dimensions and their exact contribution weights
  • Read the radar chart and spot imbalanced companies
  • Drill into the parameter analysis for any dimension
  • Understand why the Scorecard and the Ratios tab tell different stories
  • Know when to trust the score and when to override it with your own judgement
Q: What is the Finmagine™ Scorecard?
A 0–10 composite investment score built from 30+ financial ratios, weighted across five dimensions: Financial Health (25%), Growth Prospects (25%), Competitive Position (20%), Management Quality (15%), and Valuation (15%). It summarises months of ratio analysis into one number.
Click to reveal answer
Q: What does a score of 9.2 mean?
Exceptional — the highest rating band (9.0–10.0). The company ranks in the top tier across most of the five dimensions. This is rare — most high-quality blue chips score 7–8 (Proficient).
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Q: Which two dimensions carry the most weight?
Financial Health (25%) and Growth Prospects (25%) together account for half the overall score. A company that is financially weak or not growing will be hard-pressed to score well overall regardless of its Valuation or Competitive Position scores.
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Q: What does a lopsided radar chart mean?
The company scores very differently across dimensions — e.g. high Growth Prospects but low Financial Health. A nearly-circular pentagon is a balanced company; a shape that spikes in one direction and collapses in another is a company with a structural strength AND a structural risk. Read both.
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Q: Can a company score Exceptional overall but have a Poor Valuation dimension?
Yes. If Financial Health, Growth, Competitive Position, and Management Quality all score very highly, the weighted average can still reach 9.0+ even with a below-average Valuation score. This represents a high-quality, potentially expensive company — exactly the kind where you'd want the Valuation tab for context.
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Q: What is the Detailed Parameter Analysis section?
The deepest layer of the Scorecard — it breaks each dimension into its individual sub-parameters, showing the score and rationale for each one. If a dimension is pulling the overall score down, this section tells you exactly which sub-parameter is responsible and why.
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Q: What is the difference between the Scorecard and the Ratios tab?
The Ratios tab shows individual ratios in raw form (value, trend, peer percentile) — 30+ separate data points. The Scorecard synthesises those ratios into a weighted verdict — one number per dimension and one overall score. Ratios = breadth; Scorecard = synthesis.
Click to reveal answer
Q: Does the Scorecard require a Premium subscription?
No — a free account (login required) is sufficient to see the full Scorecard including all five dimensions, the radar chart, the weight bars, and the detailed parameter analysis. Premium is not required. Guests (not logged in) cannot see it.
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What Is the Finmagine™ Scorecard?

The Finmagine™ Scorecard is a 0–10 composite investment score built from 30+ financial ratios, synthesised across five weighted dimensions. It converts a sprawling set of ratio data into a single actionable verdict — without hiding the underlying detail.

Think of it as the output of a structured analyst review: someone looked at every ratio, weighted it by importance, and gave you a score you can act on. Unlike a simple P/E-based rating, the Scorecard evaluates the full business — quality, growth, competitive moat, management track record, and market pricing all together.

Finmagine Scorecard tab overview — overall score hero and five dimension cards
The Scorecard tab — overall score hero at top, five dimension cards below, radar chart and parameter analysis below that
The key design principle: The Scorecard is a starting point, not an ending point. A score of 8.2 tells you "this is a high-quality company by most measures." It does not tell you whether now is the right time to buy it. Use the Scorecard to filter the universe; use Valuation, Analysis, and your own judgement to make the final call.

The Scoring Scale

The overall score runs from 0 to 10 and maps to five labels. The label appears directly below the score number in the hero section:

Exceptional
9.0 – 10.0
Top tier across most dimensions. Rare.
Proficient
7.0 – 8.99
High quality. Most good businesses land here.
Competent
5.0 – 6.99
Solid but with visible weaknesses in one or more dimensions.
Developing
3.0 – 4.99
Meaningful issues across multiple dimensions.
Unsatisfactory
0.0 – 2.99
Significant structural problems. Requires deep investigation.
Calibration tip: Most listed Indian companies with consistently positive earnings will score 5.0–7.5. Scores above 8.5 are genuinely exceptional. Scores below 4.0 warrant caution — not necessarily a sell, but definitely a thorough investigation before buying.
Overall score hero — large number and label
The score hero — large number on the right, company name and metadata on the left, scoring scale legend below

The Five Dimensions

Below the overall score hero, five dimension cards show the individual score and label for each of the five components. Each dimension has a colour-coded top border:

💰 Financial Health 25%
Is the balance sheet strong? Can it service debt? Does cash flow match reported profit? This dimension tests liquidity, leverage, and earnings quality — the foundation that everything else rests on.
📈 Growth Prospects 25%
Is the business growing revenue and profit at a meaningful rate? This dimension looks at historical CAGR across multiple periods — 1Y, 3Y, 5Y — and whether growth is accelerating or decelerating.
🏆 Competitive Position 20%
Does the business have pricing power and returns above its cost of capital? ROCE, ROE, and margin stability are the primary signals — companies that consistently earn above-average returns typically have a structural advantage.
👔 Management Quality 15%
Is management allocating capital efficiently and acting in shareholders' interests? This dimension examines promoter holding levels, pledge trends, capital efficiency, and dividend/buyback consistency.
💲 Valuation 15%
Is the stock priced reasonably relative to earnings, book value, and cash flows? P/E, P/B, EV/EBITDA, and earnings yield are compared against sector medians and historical ranges.
Five dimension score cards
Five dimension cards — each shows a score, label, and colour-coded top border. The most important view for understanding what's driving (or dragging) the overall score.
Weight logic: Financial Health and Growth Prospects together make up 50% of the score because they are the most reliable long-term predictors of a stock's compounding ability. Valuation is only 15% — this is deliberate. A great business at a fair price consistently outperforms a mediocre business at a cheap price over long periods. The Scorecard is biased toward quality.

The Radar Chart

Below the dimension cards, a radar chart (pentagon shape) plots all five dimension scores on a single visual. Each axis represents one dimension; the further from the centre, the higher the score.

Scorecard radar chart showing five dimensions as a pentagon
The radar chart — a near-circular pentagon indicates a balanced company; a lopsided shape shows structural imbalance

How to Read the Shape

Example pattern to watch: A company with a spike in Growth Prospects but a collapsed Financial Health dimension is often a high-growth company burning cash — potentially valuable, but also potentially fragile. The radar shape surfaces this asymmetry instantly.

Dimension Weight Bars

Next to the radar chart, a weight bar chart shows each dimension's exact percentage contribution to the overall score. This is the transparency layer — you can see that Valuation only accounts for 15% and adjust your interpretation accordingly. A company with a terrible Valuation score but excellent everything else can still score 7.5+.

Dimension weight bars showing percentage contribution of each dimension
Dimension weight bars — Financial Health 25%, Growth Prospects 25%, Competitive Position 20%, Management Quality 15%, Valuation 15%

Detailed Parameter Analysis

The lowest section of the Scorecard is the most granular — the Detailed Parameter Analysis breaks each dimension into its individual sub-parameters, showing a score and rationale for each one.

Detailed parameter analysis breakdown by dimension sub-components
Detailed Parameter Analysis — each dimension broken into sub-parameters with individual scores and explanations

Each sub-parameter row shows:

When to use this section: If a dimension score surprises you — say, Financial Health is 4.2 (Developing) for a company you thought was solid — come here first. The parameter breakdown will show exactly which sub-component is dragging the score: it might be one specific ratio (e.g. rising debt) while everything else is fine.
Pro tip: A dimension score that is one band below the overall score is usually the first place to investigate. If the overall is 7.8 (Proficient) but Competitive Position is 5.1 (Competent), that's your margin compression or ROCE erosion story to investigate in the Ratios and Financials tabs.

How to Use the Scorecard in Your Research

Step 1 Check the overall score first — is this a business worth spending time on? Below 5.0, you need a specific contrarian thesis. Above 7.5, you are starting from a position of quality.

Step 2 Read the dimension cards — find the highest and lowest scoring dimensions. The highest tells you the investment thesis; the lowest tells you the risk.

Step 3 Look at the radar shape — is it balanced or lopsided? A balanced high score is rare and more dependable. A lopsided shape means the investment thesis is conditional on the weak dimension not worsening.

Step 4 Drill into the lowest dimension via the Parameter Analysis — understand which specific sub-parameter is causing the score to be low. Then cross-reference it in the Ratios tab for the raw data.

Step 5 Remember what the Scorecard doesn't capture — it is entirely backward-looking. It reflects what the business has done, not what it will do. A company about to turn around may score poorly today and well in twelve months. Use the Financials tab to see if the trajectory is improving.

Score Range Label How to Approach It
9.0 – 10.0 Exceptional Investigate valuation closely — great businesses often command premiums. Check if the high score is sustained over multiple years.
7.0 – 8.99 Proficient This is the sweet spot for long-term investors. Understand the weakest dimension and decide if you're comfortable with the risk it represents.
5.0 – 6.99 Competent Needs a thesis. Find out what's suppressing the score and whether it's structural (skip) or cyclical (opportunity).
3.0 – 4.99 Developing Multiple dimensions are weak. Turnaround story only — high risk, needs deep research.
0.0 – 2.99 Unsatisfactory Avoid without exceptional specific reason. The probability of this being a compounding investment is very low.
What the Scorecard is not: It is not a buy/sell recommendation. It is not a price target. It does not account for promoter quality beyond what financials reveal, sector tailwinds, or upcoming catalysts. Use it as a first filter, not a final decision.

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