ERS’s Portfolio Analyzer makes frequent reference to 3 of ERS’s proprietary risk ratings:

Price Risk Indicator (PRI): A measure and rating of the statistical probability and magnitude of a stock’s future price changes.

“A” or “A+”: Very low price ratios. Inexpensive or bargain-priced compared to both historical norms and standard valuation benchmarks.
“B”: Moderately low price ratios. Priced attractively but not at its lowest levels.
“C”: Average price ratios. Reasonably priced relative to its historical and objective valuation standards.
“D”: High price ratios. Expensively-priced compared to its historical norms and standard valuation metrics.
“E” or “F”: Very high price ratios. Significantly overpriced and potentially a poor investment.

Financial Risk Indicator (FRI): A measure of a company’s liquidity, financial strength, and durability.

“A” or “A+”: Strong financial health, with a low likelihood of liquidity issues or structural weakness.
“B”: Overall financially stable. May have some moderate vulnerabilities worth monitoring.
“C”: Average financial condition. No major strengths or weaknesses.
“D”: Emerging signs of financial risk, such as rising debt or weakening liquidity, which may threaten long-term resilience.
“E” or “F”: Significant financial weakness, with critical liquidity or solvency concerns that pose a high risk to investors.

Equity Risk Indicator (ERI): A rating of both the financial condition and valuation of a stock.

“A” or “A+”: Both financially strong and growing, while also priced attractively, making it a solid investment.
“B”: Relatively strong with some growth potential, making it a reasonable investment.
“C”: Moderate strength and stable fundamentals, but it is neither particularly inexpensive nor overpriced.
“D”: Weakening or showing signs of trouble, and it is becoming expensive relative to its value.
“E” or “F”: Weak or deteriorating, and likely overpriced, presenting significant investment risks.

To understand the value and performance of ERS’s risk ratings, we encourage you to read our Benchmark Study. This report analyzes how stocks with different ERS ratings have performed over time—highlighting the connection between risk ratings, returns, and loss prevention.

Click here to read the Benchmark Study and see how data-backed investing can help improve outcomes.