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YashvantHange merged 1 commit into from
Jul 18, 2026
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docs: document quality-aware scoring in CHANGELOG and README #22

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11 changes: 11 additions & 0 deletions CHANGELOG.md
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Expand Up @@ -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
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10 changes: 8 additions & 2 deletions README.md
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Expand Up @@ -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
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