MIKA methodology

A disciplined path from universe to conviction.

The shortlist is the end of a funnel—not a ranking produced by a single metric. Each company must clear eligibility, quality, valuation and stress-testing stages before conviction is assigned.

How the list is built

Screen

US optionable securities with weeklies, sufficient liquidity, analyst coverage and forecast growth.

Score

Business quality, financial durability and capital discipline are assessed through MIKA's proprietary framework.

Underwrite

Moat strength, peer multiples and normalized EPS growth produce the base return case.

Stress

A 25-cell sensitivity grid shows how often the idea clears a 12% annualized hurdle.

Intellectual influences

Built in the GARP tradition—not bound by it.

MIKA draws from Peter Lynch's multibagger lens and the wider Growth at a Reasonable Price tradition. It preserves the discipline of judging growth and price together, then adds a modern research and underwriting layer.

The enduring ideas

Growth should be understood before it is valued

The aim is not to find growth at any price. It is to identify businesses with the capacity to compound, understand what can sustain that growth and remain disciplined about what the market already expects.

Growth and price togetherA strong growth outlook matters only when the valuation still leaves room for a return.
Business evidence firstEarnings progress, financial strength and the durability of the opportunity matter more than a fashionable label.
Compounding potentialThe focus remains on companies that can grow into—or beyond—the expectations embedded in their price.

Modernized by MIKA

A company-specific, evidence-led process

MIKA is influenced by GARP; it is not a replica of Peter Lynch's process or a mechanical GARP index. The proprietary scoring logic remains internal, while the decision structure stays visible.

A systematic investability screen narrows the universe before fundamental work begins.
Current filings, earnings calls and operating facts continuously test the quality, moat and risk view.
Business-relevant, weighted peers provide a company-specific valuation anchor rather than a broad style label.
Scenario-based return underwriting and sensitivity testing show whether the thesis survives less favorable growth and valuation outcomes.

Reference paper

A Systematic Approach to GARP

S&P DJI's research explains the systematic case for combining sustained growth, profitability and financial strength with reasonable valuation.

S&P Dow Jones Indices

Open white paper

The research process

Five decisions shape every company view

The same sequence is applied to every company so that differences in classification come from the evidence, not a changing analytical standard.

Eligibility

Start with an investable universe

The starting universe is limited to U.S.-optionable securities with weekly expirations, adequate liquidity and sufficient forward-estimate coverage. ADRs may qualify when U.S. options and primary-listing estimates are usable.

Quality

Test financial durability

Qualifying companies are assessed for durable growth, cash generation and capital discipline. MIKA combines the evidence into a 10-point Quality Rating without allowing one headline metric to dominate.

Context

Frame the moat and peer set

Filings, earnings calls and operating evidence shape the moat view. A targeted comparable set is then weighted by business relevance to establish a forward valuation reference—not a generic sector average.

Underwriting

Build the return case

The model applies the lower of the company's current forward P/E and weighted comparable P/E, then compounds normalized EPS growth across the short-term holding horizon and converts the result into a one-year target.

Stress & classify

Make the assumptions survive

A 25-cell growth-and-multiple grid tests the 12% return hurdle. Grid coverage becomes the 10-point Robustness Rating; tier placement then reflects the complete quality, moat, return and risk picture.

Operating principles

Transparent assumptions, controlled optimism

Disciplined valuation inputs

A premium company does not automatically receive a premium exit. The lower applicable multiple anchors the base case, while upside remains visible only in sensitivity analysis.

Evidence before narrative

Company filings, earnings calls, estimate coverage and peer evidence are evaluated before the MIKA commentary is written. New facts can support, leave unchanged or disrupt the prior view.

A weekly process

The universe, estimates, filings, calls, valuation references and upcoming catalysts are refreshed regularly. Classification can change as the evidence or risk-reward changes.