This analysis allows to assign a score (BD-score) to the company by analyzing all its most important areas. From the analysis of fundamentals to the ability to outperform the market. Everything is summarized in an easy-to-read score.
The BD-score is based on a weighted assignment of 260 points based on the importance of the following 3 areas:
- EPS / Analysts Expectations
The BD-score ranges from 0% to 100% and a score above + 70% is considered excellent.
Explaining the assignment of each individual score would be impossible within a single article, so to understand the logic of assigning the scores, below are the characteristics that a company must possess in order to obtain the maximum BD-score (+ 100%) :
- all key business data must grow steadily and at high growth rates (Revenue, EBITDA, Free-Cash-Flow etc.)
- must operate with high business margins (EBITDA margin, Net Margin etc.) and must be constantly improving
- must clearly outperform the market (S&P 500)
- must be in a positive short, medium and long term trend
- must always destroy analysts’ expectations in terms of EPS (Earnings-Per-Share) and the stock price must react strongly positively
- analysts must expect strong EPS (Earnings-Per-Share) growth in the next quarter
Before analyzing the individual areas specifically, there is a summary containing the key data (and BD-scores) of all the areas.
*Data in Millions of USD.
Spotify Technology (SPOT)
Spotify Technology S.A. provides music streaming services. The Company offers commercial free music and ad-supported services to subscribers.
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