Reading the Value Signals

Every ticker in the GrowthPicks universe is assigned a Value Signal – a plain-language label that communicates the model's valuation commentary at a glance. It is the most visible output of the system, appearing on the Universe, Detail, and Portfolio pages.

Why Not Buy, Hold, and Sell?

Traditional investing tools use labels like Buy, Hold, and Sell. GrowthPicks avoids this terminology. These are regulated financial terms that imply personalised advice – which GrowthPicks is not designed or authorised to provide. The signals describe what the model sees about valuation. They do not tell you what to do.

The Six Value Signals

Each signal maps to a score range and a colour. Together they form a spectrum from highest conviction to no conviction.

Cheap as Chips

The model's highest conviction tier. Strong fundamentals combined with an attractive valuation. Relatively rare in the universe – it typically means the market is under-pricing a business the model considers high-quality. This does not guarantee performance. It means the model sees a favourable combination of growth, quality, and price right now.

Bargain

Strong conviction. Good fundamentals and reasonable valuation. The difference between Bargain and Cheap as Chips is usually marginal – often a slightly less attractive valuation or a slightly lower quality score.

Fair Price

Neutral. The model does not see a strong case in either direction. The business may be solid, but the price fully reflects the fundamentals. Fair Price is the most common signal in the universe – most companies, most of the time, are roughly fairly valued.

Pushing It

Caution. The valuation is starting to stretch relative to the fundamentals. This does not mean the stock will fall – expensive stocks can get more expensive. It means the margin between price and fundamental support is narrowing.

Steep

Conviction is weakening. The price has moved meaningfully ahead of what the growth and quality metrics support. Tickers rated Steep are flagged in the Portfolio page's Overvalued Exposure metric.

Full Price

No conviction. The valuation is entirely unsupported by current data. This is also the default signal when valuation metrics cannot be computed – if the model cannot assess value, it assumes the worst. A deliberate safety feature.

Below Threshold

Outside the model. The ticker has revenue growth below 15% and does not meet the minimum threshold for inclusion in the scored universe. This is not a valuation judgement – it means the company's growth profile does not fit the GrowthPicks framework. If growth re-accelerates above 15%, the ticker will re-enter the scored universe automatically.

How to Use Value Signals

Value Signals are conversation starters, not action triggers.

When you see Cheap as Chips, the right response is not "I should buy this" – it is "The model sees something here. Let me look at the Detail page and understand why."
A Full Price rating does not mean you must sell. It means the model sees no valuation support at the current price. You may have information or conviction the model does not capture.
A Below Threshold rating means the ticker's growth has dropped below the model's 15% revenue growth minimum. It may still be a good business – it is simply outside the scope of what GrowthPicks measures.
Value Signals are most useful for portfolio-level thinking. If your portfolio is heavily concentrated in Steep and Full Price tickers, the Health Dashboard will flag this as Overvalued Exposure.

The signal is always explainable. Every Value Signal is derived from the GrowthPicks Score, which is itself derived from published, visible metrics. You can always trace a signal back to its components on the Detail page.

The Bottom Line

Value Signals translate a numerical score into plain language. They communicate the model's view at a glance – without implying advice, without predicting the future, and without removing the need for your own judgement.