Data Dictionary: Component Ratings

This point-in-time dataset provides our Overall Risk/Reward Rating for stocks along with the component ratings data used to determine our overall rating. Learn more about our stock ratings methodology.


We deliver the real-time version of this data through our API in the Ratings Component endpoint.


Backtest Dataset Sample & General Information

Download a sample of the backtest data for this dictionary.


This documentation details the common fields in a backtest dataset file.

Numerical Rating Data

The data file primarily contains numerical rating data. Our rating name to rating number map is as follows

Numeric Rating Value
Definition
1
Very Attractive - our best rating
2
Attractive
3
Neutral
4
Unattractive
5
Very Unattractive - our worst rating

Datapoints

Name
Description
Datapoint
Rating: Overall Risk/Reward Rating*
Our Overall rating for stocks is based on 5 component ratings: Economic vs Reported EPS, ROIC (Return on Invested Capital), FCF Yield, Price-to-Economic Book Value, and GAP (Growth Appreciation Period). Our Overall rating for ETFs also considers Total Annual Costs. Our Overall rating for mutual fund ratings also considers Total Annual Costs & Cash Allocation. We assign ratings as follows: Most Attractive (1 - best rating), Attractive (2), Neutral (3), Unattractive (4), Very Unattractive (5 - worst rating).
RATING_OVERALL
Rating: Overall Risk/Reward Rating Unadjusted*
Our non-normalized Overall rating is based on the same data used in our Overall rating, but allows for more volatility in the rating from stock price movements. We assign ratings as follows: Most Attractive (1 - best rating), Attractive (2), Neutral (3), Unattractive (4), Very Unattractive (5 - worst rating).
RATING_OVERALL_UNADJUSTED
Rating: Economic vs Reported EPS
Our Economic vs Reported EPS rating compares reported accounting income to the economic earnings of the company. We assign ratings as follows: Most Attractive (1 - best rating), Attractive (2), Neutral (3), Unattractive (4), Very Unattractive (5 - worst rating).
RATING_INCOME_NET_ECONOMIC_PROFIT
Rating: ROIC (Return on Invested Capital)
Our Return on Invested Capital (ROIC) rating is based on the aggregate cash on cash returns of the company. We assign ratings as follows: Most Attractive (1 - best rating), Attractive (2), Neutral (3), Unattractive (4), Very Unattractive (5 - worst rating).
RATING_ROIC
Rating: FCF Yield*
Our Free Cash Flow Yield rating is based on the true cash yield of the company. We assign ratings as follows: Most Attractive (1 - best rating), Attractive (2), Neutral (3), Unattractive (4), Very Unattractive (5 - worst rating).
RATING_FCF_YIELD
Rating: Price-to-EBV Ratio*
Our Price-to-Economic Book Value rating is based on the growth expectations embedded in the stock price. We assign ratings as follows: Most Attractive (1 - best rating), Attractive (2), Neutral (3), Unattractive (4), Very Unattractive (5 - worst rating).
RATING_PRICE_TO_EBV_RATIO
Rating: GAP (Growth Appreciation Period)*
Our GAP (Growth Appreciation Period) rating is based on the number of years of future profit growth required to justify the current valuation of the stock. We assign ratings as follows: Most Attractive (1 - best rating), Attractive (2), Neutral (3), Unattractive (4), Very Unattractive (5 - worst rating).
RATING_GAP
Rating: Portfolio*
Our Portfolio rating for ETFs and mutual funds is based on the aggregated stock ratings of the securities the fund holds as well as its allocation to cash. We assign ratings as follows: Most Attractive (1 - best rating), Attractive (2), Neutral (3), Unattractive (4), Very Unattractive (5 - worst rating).
RATING_PORTFOLIO
Rating: Total Annual Costs
Our Total Annual Costs rating for ETFs and mutual funds is based on the all-in cost of a minimum investment in each fund assuming a 3-year holding period, the average holding period for mutual funds. We assign ratings as follows: Most Attractive (1 - best rating), Attractive (2), Neutral (3), Unattractive (4), Very Unattractive (5 - worst rating).
RATING_EXPENSE_TOTAL_ANNUALIZED
Rating: Cash Allocation
Our Cash Allocation rating for mutual funds is based on the percent of the fund's assets allocated to cash. We assign ratings as follows: Most Attractive (1 - best rating), Attractive (2), Neutral (3), Unattractive (4), Very Unattractive (5 - worst rating).
RATING_ALLOCATION_PCT_CASH

*Indicates the datapoint is affected by stock price.