Stability metrics explained
Places how strongly selected company metrics vary across several periods and how the share price has behaved: its fluctuations, its largest loss and its performance in market crises. The stability score describes the past and says nothing about the future price stability of a stock.
What does revenue stability measure?
The historical stability index ranges from 0 to 100. Higher values mean less past variation within this metric. It rests on the dispersion of annual revenue across several periods. The value is an index derived from that dispersion rather than a share of years.
What does earnings stability measure?
The historical stability index ranges from 0 to 100. Higher values mean less past variation within this metric. It rests on the dispersion of annual earnings. Strongly varying earnings make earnings-based multiples such as the P/E less comparable from year to year.
What does cash flow stability measure?
The historical stability index ranges from 0 to 100. Higher values mean less past variation within this metric. It rests on the dispersion of operating cash flow across several periods.
What does crisis performance show?
Describes the historical price decline across three fixed market crises: the 2008 financial crisis, the 2020 Covid crash and the 2022 rate turn. For each we compare the highest price shortly before it began with the lowest price inside it, then average those declines. A crisis with too little price data is left out. If none of the three has enough data, we report no value. The metric is placed against a fixed scale, not against a peer group. How a stock behaved in past crises says nothing reliable about how it will behave in a future one.
What do price fluctuations show?
Describes how widely the share price varied within the period used. It says nothing about an appropriate purchase price.
What is the maximum price loss (max drawdown)?
The largest decline from a previous high to the following low over the last five years, measured on weekly closing prices. We only report it when a usable close is available for at least 250 of the period’s 260 weeks, so that the same span counts for every company. In the score it is placed against a fixed scale rather than against a peer group: the scale falls from 100 points for no loss through 90 points at 20 %, 70 at 35 %, 40 at 55 %, 15 at 75 % and 5 at 90 % to 0 points for a total loss, running linearly in between. It describes the past and is not a cap on possible future losses.
How the metrics become a score
How a metric is placed within its comparison group, and how the area scores and the metrics score are formed from it, is described in the methodology.