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Showing posts with the label #equityresearch # investments #finance #Fundamentalanalysis

Equity Research - The Process

In this post I have listed down some STEPS. TIPS to be considered while doing Equity Analysis.I have assumed that the reader is well aware of Fundamental &Technical Analysis along with Valuations -   1. Separate the business from the balance sheet        How is the business capitalized? Is it sustainable? Is it relatively efficient/optimal?         What are the assets worth? Liquidation value and reproduction value         Are there any “hidden” assets or liabilities?         Excess cash, real estate, LIFO, etc.         Pension, legal liability, litigation, operational malfeasance, funding/liquidity puts, etc. 2. Separate the business from the cash flows        What are the cash flows saying, regardless of the broader business stereotypes/assumptions?        How much cash can be taken out of the business every year? Owner’s earning (net inc...