ESG Score
ESG Score / Rating
ESG & GovernanceA third-party assessment of a company's environmental, social, and governance practices. Different providers use different methodologies, and their scores often disagree.
Why it matters
Scores are inputs, not verdicts: the same company can rank well with one agency and poorly with another. What matters is whether the underlying factor changes cash flows or risk.
Indian example
Related terms
Learn the concept
ESG Fundamentals →From the research
What Three Years of a Cash Flow Statement Reveals That One Year Hides
A single year of cash flow is a snapshot. Three years is a story. Learn what the trend reveals about earnings quality, funding, and sustainability.
ValuationComparing Two Companies on ROE, and Why the Higher One Is Not Always Better
Two companies can report the same ROE for very different reasons. DuPont analysis shows why an ROE built on leverage is not the same as one built on quality.
ValuationWhat a High P/E Actually Implies, and When It Is a Trap
A high P/E is not simply 'expensive'. It is the market pricing in expectations. Learn how to read what a P/E implies, and the two traps that catch beginners.