A Complete Guide to DSE Stock Analysis Bot Scores and Terms

Tue, 04 Aug 2026 00:00:00 +0000

The Big Picture

Every stock gets scored 0–100 on two independent questions, then blended into one number:

Fundamental score — Is the company cheap or expensive relative to its earnings and assets?
Technical score — Is the price behaving in a way that favors buying right now?

These combine (weighted by your FUNDAMENTAL_WEIGHT setting) into a Final Score, which maps to a Decision label.

Part 1: Fundamental terms (is the company worth the price?)

EPS — Earnings Per Share The company’s profit divided by number of shares outstanding. If Square Pharma earned BDT 1,850 crore profit with 100 crore shares, EPS = 18.5 BDT. Higher EPS generally means a more profitable company per share you own.

P/E Ratio — Price to Earnings Price ÷ EPS. If the stock trades at 220 BDT and EPS is 18.5, P/E ≈ 11.9x — meaning you’re paying about 12 times last year’s earnings for one share. Lower P/E often (not always) means cheaper relative to profit; higher P/E often means the market expects strong future growth, or the stock is overpriced.

Sector P/E The average P/E of similar companies (e.g. other pharma companies on DSE). The bot compares your stock’s P/E against this, not against some fixed universal number — a P/E of 15 is expensive for banking but cheap for tech.

NAV per share — Net Asset Value Roughly, what the company would be worth per share if you sold everything and paid off all debts. It’s the accounting “floor value” of the business.

P/B Ratio — Price to Book Price ÷ NAV per share. A P/B under 1 technically means the stock trades below its accounting net worth — sometimes a bargain, sometimes a warning sign (market doubts the assets are worth what’s on paper). The bot treats lower P/B as generally favorable.

Dividend Yield Annual dividend per share ÷ Price, as a percentage. A 7.5% yield on GP means you’d earn 7.5 BDT per year in dividends for every 100 BDT invested, at the current price — separate from any price gain/loss.

Fundamental Score = average of how good your P/E, P/B, and dividend yield look, each converted to a 0–100 scale. This is the “is the business a good deal” number.

Part 2: Technical terms (is the timing good?)

Moving Average (MA20 / MA50) The average closing price over the last 20 or 50 trading days. It smooths out daily noise to show the underlying trend.

Price > MA20 > MA50 → uptrend (bullish)
Price < MA20 < MA50 → downtrend (bearish)
Mixed → trend is unclear/transitioning

RSI — Relative Strength Index (0–100) Measures how sharply a stock has moved up vs. down over the last 14 days.

RSI below 30 → “oversold” — sold off hard, potentially due for a bounce
RSI 40–60 → neutral, healthy
RSI above 70 → “overbought” — risen fast, potentially due for a pullback

Your SQURPHARMA test showed RSI 28 — that’s why it scored well despite nothing else changing: it’s in oversold territory, which the bot reads as a potential entry point, not a red flag.

52-week range position Where the current price sits between its lowest and highest price in the past year. Near the low = potentially cheap, but also could mean a real downtrend. Near the high = strong momentum, but also more risk of a pullback. The bot favors the middle of the range slightly over either extreme.

Volume trend Whether trading volume is rising or falling. Rising volume alongside a price move suggests conviction behind it (real buying/selling interest); falling volume suggests the move might be weak or fading.

Technical Score = average of the moving-average trend, RSI, and 52-week position, each on a 0–100 scale. This is the “is now a good moment” number.

Part 3: Putting it together

Fundamental/Technical Weight (your .env setting, currently 50/50) Controls how much each side counts toward the final score. Weight it toward Fundamental if you’re investing for the long term (holding years); toward Technical if you care more about short-term entry timing.

Conviction (1–5) Your own personal confidence in the stock, based on things a formula can’t see — news, management quality, industry outlook. It nudges the final score by up to ±10 points. This is the one input that’s entirely your judgment, not data.

Final Score & Decision

Score	Decision
75–100	🟢🟢 Strong Buy
60–74	🟢 Buy
40–59	🟡 Hold
25–39	🔴 Sell
0–24	🔴🔴 Strong Sell

Step-by-step: what to actually do when you get an alert

Read the decision, then read why. Don’t just react to “Buy” — check whether it’s driven by fundamentals (P/E looks cheap) or technicals (RSI oversold). A cheap-but-crashing stock and a fairly-priced-but-bouncing stock can both say “Buy” for very different reasons.
Cross-check the fundamentals are current. The bot only recalculates technicals live — EPS/NAV/dividend in watchlist.json are only as fresh as your last manual update.
Check for news. No score here knows about a management scandal, a new export order, or a currency risk — that’s what your notes field and conviction rating are for.
Never trade on score alone. Treat every message as “worth a closer look,” not an instruction. You make the actual buy/sell call in iTrade.