• The Piotrosky scale is a scale from zero to nine, which includes nine factors that indicate the financial stability of the company.
  • It was named after Joseph Piotrosky, a Chicago accounting professor who created the scale based on certain aspects of a corporation’s financial statements.
  • Nine aspects are based on accounting results for several years; a point is awarded each time a standard is completed, resulting in a total score.
  • The Piotrosky Ratio is a favorite metric used to evaluate value stocks.
  • If a company has eight or nine points, it is considered good value. If a company scores between zero and two, it’s likely not a good value.