How DipBuster works
The DipBuster Score is a composite signal — not a magic formula. Here's exactly what goes into it, what it means, and what it doesn't.
The Score — What Goes In
When multiple directors — CEO, CFO, or board members — buy shares in the open market within a short window, it's one of the strongest signals in market research. We track UK regulatory filings (RNS) and US SEC Form 4 disclosures.
Benjamin Graham's Net Current Asset Value (NCAV) = current assets minus all liabilities. Stocks trading below NCAV are priced below liquidation value — historically a strong mean-reversion signal. We calculate this from the latest annual filings.
A P/E of 8 means nothing without context. We compare each stock's P/E, EV/EBITDA, and P/B to its sector median. Cheap relative to peers scores higher. Negative P/E (loss-making) is penalised but not excluded — some turn-arounds score well on other signals.
We're looking for stocks that are dipping — not crashing. The score rewards stocks near their 52-week low that haven't broken key support, and penalises stocks in a sustained downtrend. Position within 52-week range and recent % change both factor in.
Reading the Score
The score is a starting point for research — not an instruction to trade. A score of 80 doesn't mean buy 10,000 shares tomorrow.
Indicative Signal Performance
The table below shows a sample of historical high-score signals (score ≥ 70) and their 12-month forward returns. Data is illustrative — based on publicly available price data and manually verified signals. This is not a live-audited backtest.
Sample of 6 signals. Past performance is not a reliable indicator of future results. Includes one loss to illustrate the signal is not infallible. Full audited backtest is planned for Q3 2026.
What the score doesn't account for
See it in action
Browse the leaderboard, run the screener, or pull up any stock to see its full DipBuster Score breakdown.
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