The Piotroski F-Score awards one point each for nine binary tests across profitability, leverage, and operating efficiency — things like positive net income, improving margins, and falling share dilution. The total, from 0 to 9, is a quick screen for fundamental strength, especially among cheap or out-of-favor stocks.
The formula
9 Pass/Fail Signals9
= F-Score (0–9)
Why it matters
- —Designed to separate genuinely improving value stocks from cheap stocks that are cheap for good reason.
- —Each point is a simple yes/no test, which makes the score easy to audit and hard to game with accounting choices.
- —Most useful as a screen alongside a low valuation metric like P/B — high F-Score plus low P/B is a classic value-investing combination.
How to read it
| 0–3 | Weak fundamentals — multiple health signals failing |
| 4–6 | Average — a mixed scorecard |
| 7–9 | Strong fundamentals across nearly every signal |