Quality Score
Returns a composite quality score for a stock on a scale of 1-100. Higher scores indicate higher quality businesses.
Supported Symbol Formats
| Type | Format | Example |
|---|---|---|
| US Stocks | SYMBOL | AAPL, MSFT |
Score Interpretation
| Score Range | Interpretation |
|---|---|
| 80-100 | Excellent quality, strong fundamentals |
| 60-79 | Good quality |
| 40-59 | Average quality |
| 20-39 | Below average quality |
| 1-19 | Poor quality, weak fundamentals |
Factors Considered
The quality score typically considers:
- Return on equity (ROE)
- Return on assets (ROA)
- Profit margins
- Debt levels
- Earnings consistency
- Balance sheet strength
Notes
- Score is relative to peers
- Higher is better
- Quality stocks may command premium valuations
Syntax
=RankQuality(Symbol)Returns
Quality score from 1-100
Examples
=RankQuality("AAPL")=RankQuality("MSFT")=RankQuality("JNJ")=RankQuality(A1)=IF(RankQuality("AAPL")>80,"High Quality","")When to Use
- Quality investing stock screening
- Identify financially strong companies
- Avoid value traps
- GARP investing analysis
When NOT to Use
| Scenario | Use Instead |
|---|---|
| Valuation assessment | RankValue() |
| Technical analysis | RankTechnical() |
| Overall stock rank | RankOverall() |
| Specific metrics | ROE, ROA, margin functions |
Common Issues & FAQ
What is a good quality score?
Above 70 indicates good quality. 80+ suggests excellent fundamentals. Combine with value score for GARP (Growth at Reasonable Price) investing.
Why do cyclical companies have lower scores?
Cyclical businesses have more variable earnings and margins, which can lower quality metrics. Quality scores favor consistent businesses.
How is this different from F-Score?
Quality score is a continuous 1-100 scale. F-Score is a 0-9 discrete score. Both assess quality but use different methodologies.
Related Formulas
More MarketXLS Valuation formulas you can use in the same worksheet:
See RankQuality used in a complete workbook: Analyst Ratings MCP Server: Live Price Targets and Consensus in Excel and AI
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