KvantraRank
How KvantraRank works
KvantraRank is a QVM system (Quality, Value, Momentum) that gives every stock a score from 0 to 100, the same type of framework used by leading quantitative managers and sovereign wealth funds. A higher score means the stock screens more attractively on the factors most consistently linked to long-term returns.
The three factors
How cheaply a company is priced relative to its fundamentals. Cheaper companies have historically earned higher returns over time.
How solid and well-run a company is: profitability, cash generation and balance-sheet strength.
Whether the company has outperformed its peers over the past year, including the trend in analyst expectations.
These three factors are chosen because they are the best documented in academic research across markets, time periods and sectors.
The weighting
KvantraRank starts from a base weighting of Value 40%, Quality 35% and Momentum 25%. Combined, these identify attractively priced quality companies with positive price trends.
These weights adapt slowly to the market. When valuations within a region and sector are unusually stretched (a wide gap between the cheapest and most expensive companies) the Value weight is nudged up (and Quality and Momentum down) because cheapness tends to matter more in those conditions. The opposite happens when the spread is narrow. The adjustment is capped at ±10 percentage points and is measured against years of history, so the weights drift gradually rather than jumping around.
Fair comparison
A stock is only ranked against other companies in the same region and sector, never against the entire market. A Norwegian industrial company is compared with other European industrials, not with US technology companies. We also separate large caps from small- and mid-caps, so companies compete against real peers.
Where you'll see it
You'll find KvantraRank everywhere on the platform. The KvantraRank table lets you rank every stock in a country. Each stock profile shows its score. Your portfolio shows the combined score of your holdings.
When data is missing
Some companies don't have enough data for a reliable score. A sub-score (Quality, Value or Momentum) is only approved when enough of its underlying metrics are available. The combined KvantraRank is only shown when all three sub-scores are approved, so a KvantraRank always means the same thing: a complete Quality, Value and Momentum assessment. If one sub-score is missing, we show the two sub-scores we have and leave the KvantraRank as N/A. If too many metrics are unavailable, no scores are shown at all. We never re-weight a score on partial data.
Academic grounding
The approach builds on decades of factor research, including Novy-Marx (2012) on gross profitability, Sloan (1996) on accruals, and Cooper, Gulen & Schill (2008) on asset growth, among others.