diff --git a/CHANGELOG.md b/CHANGELOG.md
index 053cfd1..41324ea 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -31,6 +31,17 @@ All notable changes to Investo are documented here. The format follows
   `investo.export` (`save_html`, `save_pdf`, `find_browser`, `html_to_pdf`).
 
 ### Changed
+- **Quality-aware scoring — cash-rich, fairly-priced compounders are no longer under-rated.** The
+  valuation bucket was a pure cheapness screen (P/E · P/B · EV/EBITDA scored strictly
+  lower-is-better with hard ceilings), so a high-quality company at a fair premium lost almost the
+  whole bucket and a large net-cash balance sheet earned nothing. Now the multiple ceilings widen
+  quadratically with a four-signal **quality factor** (ROE, ROCE, operating margin, revenue+EPS-CAGR
+  growth); **net cash** is surfaced on `Ratios` (FX-normalized against market cap) and rewarded both
+  by lowering the effective equity multiple and by a signed term in the renamed **Balance Sheet**
+  bucket (which now also penalizes net debt); DCF is a 30% cross-check recentred so fair value scores
+  neutral; and the weights lean toward durable quality (Valuation 15→10, Profitability 15→17,
+  Competitive Moat 10→12, Balance Sheet 10→11). Rank order is preserved (Spearman ≈ 0.99 on a
+  synthetic basket) — the shift is targeted, not blanket inflation.
 - **`investo analyze` output flags now compose.** `--json`, `--html` and `--pdf` each do one thing
   and can be combined; previously `--html` silently suppressed `--json`. Bare `--html`/`--pdf` write
   `investo-<SYMBOL>-<YYYY-MM-DD>.<ext>`; parent directories are created; a PDF-engine failure exits
diff --git a/README.md b/README.md
index 2a63429..fec2808 100644
--- a/README.md
+++ b/README.md
@@ -59,12 +59,18 @@ document rather than a dashboard — are available too.
 
 ### Rating buckets (out of 100)
 
-| Growth | Profitability | Cash Flow | Debt | Valuation | Moat | Management | Industry | Innovation | Risk | ESG* |
+| Growth | Profitability | Cash Flow | Balance Sheet | Valuation | Moat | Management | Industry | Innovation | Risk | ESG* |
 |:-:|:-:|:-:|:-:|:-:|:-:|:-:|:-:|:-:|:-:|:-:|
-| 15 | 15 | 10 | 10 | 15 | 10 | 10 | 5 | 5 | 5 | 5* |
+| 15 | 17 | 10 | 11 | 10 | 12 | 10 | 5 | 5 | 5 | 5* |
 
 \*ESG is optional; when unavailable the remaining buckets renormalize to 100.
 
+**Valuation is quality-aware.** A premium multiple isn't punished when the company's economics
+justify it — the acceptable P/E · P/B · EV/EBITDA ceilings widen with ROE, margins and growth, so a
+proven compounder isn't floored just for not being cheap (while a low-quality expensive name still
+is). **Net cash** strengthens the score — it lifts the Balance Sheet bucket and lowers the effective
+equity multiple — and **net debt** weakens both.
+
 ---
 
 ## Install