NIO Inc. (NIOIF) scores 7/100 — concerning metrics indicating significant structural or financial risks.
📊 How is the Zyberno Score calculated?+
The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.
Requires fair value calculation and current price data
💰 How is Margin of Safety calculated?+
Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.
Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%
How We Calculate Intrinsic Value (DCF Method):
Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)
Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings
Step 3: Project 10 years forward using the calculated growth rate
Step 4: Discount each year's cash flow to present value using 10% discount rate
Step 5: Calculate terminal value using 3% perpetual growth rate
Step 6: Sum all discounted cash flows = Intrinsic Value
What The Percentages Mean:
+50% or more
EXCELLENT — Very undervalued
+25% to +50%
GOOD — Attractive discount
0% to +25%
FAIR — Reasonable value
0% to -25%
CAUTION — Slight premium
-25% or worse
POOR — Overvalued
"Price is what you pay, value is what you get." — Warren Buffett
Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.
Formula: Fundamental Growth Rate − Market-Implied Growth Rate
The Two Components:
Fundamental Growth Rate = ROIC × Reinvestment Rate
What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.
Market-Implied Growth Rate = Reverse DCF
The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.
What The Gap Means:
Gap > +5%Market Underestimates — potential upside
+2% to +5%Slight Underestimate
-2% to +2%Fairly Priced — market consensus matches fundamentals
-5% to -2%Slight Overestimate
Gap < -5%Market Overestimates — price embeds optimism fundamentals don't support
A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.
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