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Methodology

How the LargeKite Score Works

Our scoring methodology combines quantitative financial analysis with AI-powered report generation to deliver structured, transparent investment intelligence.

Scoring Framework

Every investment analysis produces a Decision Score between 0 and 100. This score is a weighted composite of four fundamental factors, each independently evaluated and then combined to reflect the overall investment thesis.

30%

Valuation

Assesses whether an asset is fairly priced relative to its intrinsic value and peer group.

  • P/E ratio vs. sector median
  • Price-to-book context
  • Relative valuation positioning
  • Historical range analysis
25%

Growth

Measures revenue and earnings momentum, with forward-looking estimates for sustainable growth.

  • Revenue growth trajectory
  • Earnings momentum signals
  • Market position and expansion potential
  • Sector growth tailwinds
25%

Risk

Evaluates downside exposure from macro, regulatory, competitive, and financial threats.

  • Beta and volatility profile
  • Downside scenario analysis
  • Regulatory and macro exposure
  • Competitive positioning risk
20%

Sentiment

Captures market consensus from institutional activity, analyst ratings, and momentum signals.

  • Bull vs. bear case balance
  • Confidence-weighted scoring
  • Momentum direction signals
  • Risk factor count and severity

Score Calculation

Composite Score Formula

Score = (Valuation × 0.30) + (Growth × 0.25) + (Risk × 0.25) + (Sentiment × 0.20)

Each factor is independently scored 0–100, then combined using the weights above. The final score is clamped to the 0–100 range.

Score Interpretation

80–100

Strong Opportunity

High conviction across all factors. Fundamentals, growth trajectory, and sentiment strongly align.

65–79

Favorable

Positive outlook with manageable risks. Suitable for investors with moderate risk tolerance.

45–64

Neutral

Mixed signals require careful analysis. Position sizing and timing become important considerations.

30–44

Cautious

Elevated risks or deteriorating fundamentals. Consider hedging or reducing exposure.

0–29

High Risk

Significant downside risk identified. Exercise extreme caution or avoid entirely.

Data Sources & Processing

Market Data

  • Price and valuation metrics
  • Historical price modeling
  • Volume and liquidity signals
  • Sector performance tracking

Fundamental Data

  • P/E and valuation ratios
  • Dividend and yield analysis
  • Beta and volatility profiling
  • Peer comparison within sectors

AI Analysis

  • Natural language report generation
  • Structured bull/bear framing
  • Multi-factor score synthesis
  • Bias-aware recommendation logic

Real Estate Scoring

Property investments use an adapted scoring framework that emphasizes cash flow fundamentals and market-specific indicators.

Cap Rate

Net operating income / property value

Cash-on-Cash

Annual return on invested capital

Vacancy Rate

Local market vacancy trends

Appreciation

Historical and projected price growth

Important Disclaimer

LargeKite Capital Intelligence provides analysis for informational and educational purposes only. Our scores and recommendations do not constitute investment advice, and past performance does not guarantee future results. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.

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