Piotroski F-Score Model in Investment

The Piotroski F-Score model was developed by Joseph Piotroski in 2000 to evaluate a company's financial health and performance. The research article proves that Piotroski F-Score is an effective predictor of a company’s future performance by assessing the nine components of the company where the lower scores indicate poor performance and the higher scores (6-8) indicate great company performance. The main objective of this model is to filter out weak companies and enhance value strategy. This study aims to introduce Piotroski’s F-score as an essential tool for evaluating a few private Indian banks. In his Journal, Joseph Piotroski said, “Embedded in that mix of companies, you have some that are just stellar. Their performance turns around. People become optimistic about the stock, and it takes off [but] half of the firms languish; they continue to perform poorly and eventually de-list or enter bankruptcy.”