Methodology
How NarrEx scoring and verdict logic works.
This page explains the decision logic behind NarrEx outputs: what is evaluated, how claims are matched to model evidence, how verdicts are assigned, and how the score should be interpreted in practice.
What NarrEx evaluates
NarrEx reviews claims across core operating areas such as growth, margins, efficiency, and capital discipline. Each claim is matched against relevant model evidence so teams can quickly see where narrative and numbers align, where they partially align, and where gaps appear.
Coverage is intentionally structured and repeatable, so two reviewers assessing the same materials can arrive at consistent conclusions about credibility.
Verdict definitions
Narrative claim is consistent with the financial model within tolerance.
Directionally aligned but outside the standard tolerance band.
Narrative claim conflicts with the model beyond the tolerance threshold.
No corresponding model data found for this claim.
Metric is not relevant for the selected transaction type.
How evidence matching works
NarrEx applies stricter checks to historical claims and context-aware allowances to forward-looking projections. This reflects the reality that reported actuals should be precise, while forecasts carry expected uncertainty.
When no valid model evidence is available for a claim, the system flags that claim as unsupported rather than assuming alignment.
How to interpret the score
The credibility score is a 0-100 directional signal that summarizes overall narrative-model alignment. Higher scores indicate broader consistency between claims and underlying financial evidence. Lower scores indicate more unresolved contradictions, weaker support, or missing substantiation.
The score is intended for decision support, not as a standalone investment decision rule. Teams should use it alongside qualitative judgement, market context, and diligence findings.
Scope and limitations
NarrEx evaluates narrative-model alignment. It does not assess market size, competitive positioning, team quality, or any factor not represented in the submitted financial model. A high credibility score does not imply investment merit — it indicates that the narrative is consistent with the numbers presented. NarrEx is a decision support tool. It does not make investment recommendations.
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