Investing in growth companies presents unique challenges, as many fail to fulfill their promised potential. To address this issue, Professor Partha Mohanram developed the G-Score in 2005—a methodical evaluation system designed specifically for growth stocks that complements Joseph Piotroski’s F-Score used in value investing.
The framework analyzes eight targeted financial indicators that are particularly relevant for growth-oriented enterprises. It measures how effectively companies allocate capital toward future expansion through investments in research and development, infrastructure spending, and market penetration strategies. The methodology also incorporates crucial profitability metrics such as return on assets and cash flow strength. Companies receive one point for each favorable metric, resulting in a scoring range from zero to eight, where higher scores generally signal more promising growth trajectories.
What sets the G-Score apart is its focus on enduring growth quality over mere rapid expansion. The system enables investors to differentiate between businesses with durable competitive advantages and those experiencing temporary success or increasing competitive pressures. Mohanram’s studies demonstrated that investment strategies combining long positions in high G-Score companies with short positions in low-scoring ones have consistently delivered superior returns compared to market benchmarks across various economic cycles. This track record establishes the G-Score as an invaluable instrument for growth-oriented investment strategies.
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Here are Validea’s top 10 G Score stocks for September of 2025.
| Ticker | Company Name | Price | Market Cap ($mil) | PE Ratio | Price/ Sales | Relative Strength | Price/ Book | Price/ Cash Flow | Dividend Yield | Mohanram G Score |
|---|---|---|---|---|---|---|---|---|---|---|
| AVY | AVERY DENNISON CORP | $168.06 | $13,106 | 18.8 | 1.5 | 31 | 6.0 | 12.8 | 2.1% | 8 |
| BCPC | BALCHEM CORP | $161.16 | $5,230 | 37.0 | 5.3 | 43 | 4.1 | 28.0 | 0.5% | 8 |
| PKX | POSCO HOLDINGS INC (ADR) | $51.34 | $16,060 | 45.6 | 0.3 | 33 | 0.4 | 5.2 | 0.0% | 8 |
| PLPC | PREFORMED LINE PRODUCTS CO | $192.13 | $946 | 22.4 | 1.5 | 85 | 2.1 | 14.5 | 0.4% | 7 |
| PLTK | PLAYTIKA HOLDING CORP | $3.72 | $1,398 | 16.1 | 0.5 | 19 | 4.8 | 10.8% | 7 | |
| PBH | PRESTIGE CONSUMER HEALTHCARE INC | $65.05 | $3,201 | 15.3 | 2.9 | 37 | 1.7 | 13.2 | 0.0% | 7 |
| PD | PAGERDUTY INC | $16.47 | $1,536 | 3.2 | 39 | 8.5 | 360.5 | 0.0% | 7 | |
| PRDO | PERDOCEO EDUCATION CORP | $32.92 | $2,138 | 14.3 | 2.8 | 82 | 2.2 | 11.6 | 1.6% | 7 |
| PRO | PROS HOLDINGS, INC. | $15.50 | $746 | 2.2 | 37 | 1,621.0 | 0.0% | 7 | ||
| QLYS | QUALYS INC | $134.95 | $4,871 | 26.9 | 7.7 | 61 | 9.6 | 24.2 | 0.0% | 7 |
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