The 100-Point Master Value Framework
Our proprietary methodology synthesizes the foundational wisdom of the 15 greatest value investors into an unyielding, objective evaluation matrix. Every enterprise is measured across 4 knockout disqualification gates and scored out of 100 points across 5 pillars of compounding excellence.
Synthesized from the 15 Great Masters of Value Investing
The 4 Knockout Disqualification Gates
Before awarding a single point, any prospective investment must pass all four gates. A single failure produces an immediate "AVOID" verdict regardless of headline valuation.
Unit economics must be explainable in 2 minutes to a 10-year-old. Complex black-box models are relegated to the "Too Hard" pile.
Automatic exclusion of commercial banks, life insurers, real estate developers, airlines, and unhedged commodity extraction.
Net Debt / EBITDA must not exceed 3.5x, interest coverage must be >3.0x, and 24-month maturities must be funded without debt rollovers.
Owner cash conversion (FCF / Net Income) must exceed 75%, SBC dilution must be <3%/year, and working capital accruals must be clean.
The 5 Pillars of Value Compounding (100 Points Total)
Business Model Quality, Simplicity & Secular Runway
Evaluates back-of-the-envelope clarity, mission-critical repeat customer demand, Peter Lynch stock archetype classification, and multi-year secular growth runways unburdened by cyclical boom-bust dynamics.
Economic Moat Durability & Spawner DNA
Measures structural competitive barriers (network effects, switching costs, cost advantages), moat trajectory (widening vs stable vs narrowing), the Terry Smith >60% gross margin shield, Nick Sleep's Scale Economics Shared (SES) flywheel, and Mohnish Pabrai's Spawner DNA.
Financial Fortress, Solvency & Forensic Cash Flow
Enforces balance sheet invulnerability under macroeconomic depressions. Audits Net Debt / EBITDA, Graham working capital ratios, Howard Marks' 24-month debt maturity ladder, forensic cash conversion, and accounting red-flag scans.
Capital Allocation & Management Integrity
Audits sustained Return on Invested Capital (ROIC) and Greenblatt ROC, Buffett's $1 Retained Earnings Test, opportunistic share cannibalization below intrinsic value, insider ownership, and Philip Fisher's management candor test.
Valuation Engine, Margin of Safety & Asymmetry
Triangulates intrinsic worth through Owner Earnings DCF, Seth Klarman's Bear-Case Downside Floor check, Greenblatt Earnings Yield, Peter Lynch's Dividend-Adjusted PEG ≤ 1.0, and Mohnish Pabrai's Dhandho asymmetric payoff ratio.
Conviction Tiers & Dynamic Verdict Hurdles
| Master Score | Classification | Buy Hurdle | Strong Buy Hurdle |
|---|---|---|---|
| 90 - 100 | Tier-1 Elite Compounding Machine | MOS ≥ +15% | MOS ≥ +25% + Bear Floor |
| 80 - 89 | High-Quality Value Compounder | MOS ≥ +20% | MOS ≥ +30% + Bear Floor |
| 70 - 79 | Solid Defensive Compounder / Stalwart | MOS ≥ +25% | MOS ≥ +35% + Bear Floor |
| 60 - 69 | Deep Value / Workout Play | MOS ≥ +35% | MOS ≥ +40% + Asset Floor |
| < 60 | Failing Quality Gate / Value Trap | AVOID | AVOID |
Autonomous Agent Maintenance Protocol
Every company dossier in this ledger is monitored continuously under confidential internal rules. When a company files its quarterly 10-Q, annual 10-K, or releases significant financial disclosures, our autonomous research agent executes the 4 Knockout Gates, re-scores all 5 Pillars, re-calculates Owner Cash Flows, and updates valuation scenarios in accordance with Rule 07.