How do Star Ratings Work?

A Star Rating gives you an 'at a glance' picture of how any company is performing relative to its peers. The more stars the company receives, the better it has performed.

• A Star Rating that has five stars indicates a company that is better than all its peers.
• A Star Rating that has two and a half stars indicates a company that is average.
• A Star Rating that has one or no stars indicates a company that is worse than its peers.

Understanding the Stars

The stars on the dark blue background represent how a particular company is performing relative to the market. The stars on the lighter blue background represent how a particular company is performing relative to its sector.

Using the Star Ratings

To keep things simple, just remember that the more stars there are, the better the share is performing. A quick glance of the Star Ratings should tell you whether a share is worth researching or not - lots of stars should encourage you to dig a little deeper.

MarketStars Ratings:

• Value - Helping you to find stocks where the full value of the company is not reflected in the 'cheap' share price.
• Growth - Identifying high growth companies. This is based on growth in Earnings, Sales and Profitability growth.
• Income - Income gives the company's rating in terms of its dividend payments, dividend cover and forecasted future dividend amounts.
• Price Trend - A strong price trend rating is given to companies with a growing share price.