When you look at a stock on etoo.in, the first thing you see is our proprietary AI Confidence Score. But what does a score of 82 actually mean compared to a 45? In this post, we'll break down the methodology behind our platform.
How the AI Scores Companies
Our backend pipeline automatically downloads the latest annual reports from the National Stock Exchange (NSE). It parses hundreds of pages of financial disclosures, focusing heavily on management commentary, future outlooks, risk factors, and financial tables.
The AI is prompted to act as a harsh, conservative value investor. It penalizes overly aggressive growth assumptions, high debt burdens, and opaque accounting practices. It rewards clear, sustainable business models and strong cash flow markers.
The Scoring Tiers
Scores 80 - 100: High Confidence (Green)
These companies demonstrate exceptional fundamental strength. Their reports are transparent, and their financial outlook is robust. Mathematically, these stocks carry a historically lower risk profile.
Scores 40 - 79: Neutral / Monitor (Yellow)
A mixed bag. The company might have a strong market position but carries significant debt, or perhaps they have great earnings but rely heavily on a single unstable sector. Further personal due diligence is highly recommended here.
Scores 0 - 39: High Risk (Red)
The AI found major red flags. This could indicate aggressive accounting, severe market headwinds, declining revenues without a clear turnaround strategy, or critical auditor warnings.
By quantifying qualitative data, etoo.in provides an unprecedented edge for the modern retail investor.