How we score conviction

After every other piece of analysis lands - the financials, the annual report, the concall, the walk-the-talk, the red flags, the valuation band - we produce a single number called conviction.

Conviction is between 0 and 1. The higher the number, the more confident we are that the analysis is reliable and the company's picture is clear. It is not a buy/sell signal. It's a signal about how much weight you should give the rest of our analysis.

What goes into it

Conviction is high when several different threads of evidence point the same way:

• The financial statements all agree (P&L, balance sheet, cash flow tell the same story)
• The walk-the-talk track record is consistent
• Red flags are absent or low-severity
• Management commentary in the concall aligns with what we see in the numbers
• The sector is one we have enough comparison points for
• The data we have is fresh (recent quarterly result, recent annual report, recent concall)