What Is a Motley Fool Moneyball Score?

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"Motley Fool Moneyball is powered by artificial intelligence, informed by investing acumen, oriented to long-term business performance, and designed to help you make better investment decisions."
Tom Gardner, Co-Founder of The Motley Fool

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Financial Score: Measuring Fiscal Strength

The Financial Score evaluates a company's economic health and performance.

What it measures: Return on net tangible assets, return on invested capital, comprehensive financial strength, sales growth, and more.
Why it matters: Strong financial performance typically indicates a company that can withstand economic challenges, fund growth, and potentially deliver shareholder returns.

GARP Score: Growth at a Reasonable Price

The GARP Score measures a company's growth prospects relative to its current valuation.

What it measures: The balance between growth potential and the price paid for that growth.
Why it matters: GARP investing seeks to identify companies with solid growth prospects that aren't overvalued, potentially offering the best of both growth and value investing approaches.

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Growth at a Reasonable Price (GARP)

Growth at a reasonable price (GARP) is a strategy where investors seek growth stocks that trade at a fair valuation.

Leaders Score: Evaluating Management Quality

The Leaders Score assesses the effectiveness of a company's leadership team.

What it measures: Executive track record, shareholder returns generated, company financial performance, capital allocation decisions, and governance practices.
Why it matters: Great companies are typically led by exceptional leaders who make smart strategic decisions and allocate capital effectively.

Product Score: Analyzing Competitive Advantage

The Product Score examines a company's offerings and market position.

What it measures: Competitive strength relative to industry peers, product excellence, quality, customer satisfaction, innovation, and competitive edge.
Why it matters: Companies with superior products or services often command pricing power, customer loyalty, and market share growth.

Tech Score: Measuring Technological Capabilities

The Tech Score evaluates a company's technological strength and innovation potential.

What it measures: Core infrastructure, industry position, AI capabilities, and innovation potential.
Why it matters: In today's rapidly evolving business environment, technological advantages often translate to business durability and success.

AI Score: Assessing Artificial Intelligence Capabilities

The AI Score focuses specifically on a company's artificial intelligence prowess.

What it measures: AI quality, potential impact, depth of technical knowledge, infrastructure, and products.
Why it matters: AI is transforming virtually every industry, and companies that effectively leverage AI may gain significant competitive advantages.

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Competitive Advantage

A term used in business contexts to describe what drives superior profits, better product sales, and the continuous ability to innovate.

Surge Score: Tracking Momentum

The Surge Score evaluates a stock's recent performance trajectory.

What it measures: Historical price data with emphasis on recent monthly changes, normalized for current market dynamics.
Why it matters: While Motley Fool investing generally focuses on long-term performance, momentum can indicate shifting market perceptions or business developments worth investigating.

ROUNTA: Return on Unleveraged Net Tangible Assets

ROUNTA is a specialized financial metric favored by Warren Buffett that measures efficiency.

What it measures: A company's ability to generate cash flow from its physical asset base, ignoring debts, highlighting asset utilization and management skill.
Why it matters: High ROUNTA scores indicate companies that excel at generating returns from their tangible assets. Warren Buffett particularly values this metric for assessing business efficiency.

ROUNTA Scoring Ranges:

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About the Author

David started investing in stocks at the ripe age of 12 years old and has been a Fool ever since. David has been a full-time Fool since 2014, serving on The Motley Fool's investing and product teams worldwide. He is an avid investor owning more than 100 stocks and crypto assets in his portfolio.

TMFDavidKretzmann

@David_Kretzmann

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