Piotroski F-Score — Piotroski F-Score
DeepScreen explains Piotroski F-Score as follows: The Piotroski F-Score is a nine-point financial-strength checklist. Higher scores indicate more positive accounting signals, while lower scores call for closer investigation.
Formula
Nine binary profitability, leverage, liquidity and efficiency tests, summed from 0 to 9
Illustrative example
If seven of the nine accounting tests pass and the other two fail, the score is 7/9. If a required input is missing, report incomplete coverage instead of counting an assumed pass or fail.
Educational example; these are not reported company figures.
How to interpret it
- Scores of 7–9 are commonly treated as financially strong.
- Scores of 0–3 indicate several weak accounting signals.
Limitations
- It is a screening signal, not a valuation model.
- Missing statement fields should be reported as insufficient data, never estimated.
Frequently asked questions
- What is Piotroski F-Score?
- The Piotroski F-Score is a nine-point financial-strength checklist. Higher scores indicate more positive accounting signals, while lower scores call for closer investigation.
- How is Piotroski F-Score calculated?
- Nine binary profitability, leverage, liquidity and efficiency tests, summed from 0 to 9
- What should investors watch for with Piotroski F-Score?
- It is a screening signal, not a valuation model. Missing statement fields should be reported as insufficient data, never estimated.
. Educational analytical content, not investment advice.