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Persistency Score
Persistency Score
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Written by Polly
Updated over a week ago

Persistency Score is a % measure of how persistent a company's metric has been over its total length available on FAST Graphs. The score represents a percentage of the time including calculated monthly values that the earnings metric line is within the perfect persistency corridor. This corridor has a width of (1 plus the growth rate percentage) times (plus and minus) 10% times the persistent fit point for each fiscal year. The width of the corridor is mainly affected by the 10% width multiplier and the persistent fit point, but the higher growth rate of the earnings metric also provides a width boost for the corridor calculation. You can also think of the (plus and minus) 10% as being the allowable error rate or variation rate around the persistent fit point.

Growth Score represents the number of times the selected metric has grown over the total length represented as a %.

Number of Years represents the amount of data we have available for the company. You can use this field to find older companies or younger companies from the screening tool.

Persistency represents how consistent the growth of the company is. A certain point in time is scored one point as long as it’s within an identified range. A point in time that is above the range, is scored partial points in order to not fully penalize an outstandingly good result. And anything below the range is scored zero points. This is only available for the “Max” Historical timeframe, and we may create persistency scores for shorter timeframes in the future.

The definition of persistency score is a rating of how persistent the earnings of a company have grown. Cyclical companies will not be highly rated, and companies growing too fast and then slowing down will not be as persistent as a company that has grown at consistent rates.

Video: Persistency Score

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