InvestingPro’s Financial Health

What Does Financial Health Mean?

A stock’s financial health is an indication of its performance and financial position based on evaluating the overall market value, calculating specific financial ratios, and comparing it to other companies within the same industry.

What is InvestingPro’s Financial Health?

Financial Health represents the overall strength of a company. The comprehensive analysis considers market value, financial ratios, industry benchmarks, and competitors to determine its financial position. InvestingPro users have the ability to see the overall performance as well as the specific metrics used and the widely accepted indicators that contribute to the calculation.

InvestingPro’s Financial Health uses a scale of 1-5 based to rate a stock by taking into account its five parameters, our Health Checks: Relative Value, Price Momentum, Cash Flow Health, Profitability Health, and Growth Health. Financial Health is calculated as a weighted average of the Health checks.

We also display under 'View Details' the key metric ratio as can be seen below.

How are the Health Checks calculated and displayed?

Those Health checks are also rated on the 1 to 5 scale in relation to sectoral peers. 

The Health Checks are displayed in a historical chart, in a way that you will be able to easily see its evolution through time.

Have more questions?

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