Financial markets are constantly evolving, and smart investors need proven methods to spot real growth potential. Professor Partha Mohanram created the G-Score framework in 2005 as a systematic way to analyze growth companies, serving as a growth-focused complement to Joseph Piotroski’s F-Score approach for value investing.
The G-Score evaluates eight key financial metrics tailored specifically for growth-oriented businesses. It assesses how well companies invest in their future through research and development, capital spending, and market expansion efforts. The framework also examines important profitability measures like return on assets and cash flow performance. Each company earns one point per positive indicator, creating scores from zero to eight—with higher scores typically indicating better growth prospects.
The G-Score’s key strength lies in identifying sustainable growth rather than just fast growth. It helps investors distinguish between companies with lasting competitive edges and those enjoying short-term wins or facing mounting competitive challenges. Mohanram’s research showed that investment portfolios built around high G-Score companies, combined with short positions in low-scoring ones, have consistently outperformed the broader market through different economic conditions. This makes the G-Score a useful tool for investors focused on growth strategies.
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Here are Validea’s top 10 G Score stocks for June 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 | $177.72 | $13,893 | 20.4 | 1.6 | 39 | 6.4 | 13.7 | 2.0% | 8 |
| BCPC | BALCHEM CORP | $165.54 | $5,399 | 39.7 | 5.6 | 64 | 4.5 | 29.7 | 0.5% | 8 |
| PKX | POSCO HOLDINGS INC (ADR) | $47.68 | $15,282 | 23.9 | 0.3 | 33 | 0.4 | 4.4 | 0.0% | 8 |
| PLPC | PREFORMED LINE PRODUCTS CO | $143.97 | $711 | 18.3 | 1.2 | 65 | 1.6 | 11.6 | 0.6% | 7 |
| PLTK | PLAYTIKA HOLDING CORP | $4.88 | $1,831 | 13.0 | 0.7 | 25 | 5.6 | 8.2% | 7 | |
| PRDO | PERDOCEO EDUCATION CORP | $33.27 | $2,180 | 14.7 | 3.0 | 87 | 2.3 | 12.4 | 1.5% | 7 |
| QLYS | QUALYS INC | $139.70 | $5,075 | 28.6 | 8.2 | 61 | 10.2 | 25.5 | 0.0% | 7 |
| RAMP | LIVERAMP HOLDINGS INC | $33.12 | $2,153 | 2.9 | 63 | 2.3 | 145.9 | 0.0% | 7 | |
| RDWR | RADWARE LTD | $24.03 | $1,026 | 90.7 | 3.6 | 78 | 3.2 | 43.4 | 0.0% | 7 |
| REYN | REYNOLDS CONSUMER PRODUCTS INC | $21.48 | $4,518 | 13.5 | 1.2 | 37 | 2.1 | 9.7 | 3.2% | 7 |
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