Research Process
Methodology
A repeatable process for understanding businesses, expectations, valuation, and risk.
1. Understand the business
Business model, industry structure, competitive position, products, customers, revenue drivers, unit economics, and relevant KPIs.
2. Analyze the financials
Revenue quality, margins, cash conversion, capital intensity, working capital, leverage, liquidity, and returns.
3. Evaluate management and capital allocation
Assess incentives, reinvestment, acquisitions, shareholder returns, balance-sheet policy, and consistency.
4. Build expectations
Translate operating assumptions into forecasts and identify what the market price appears to imply.
5. Value the business
Use DCF, relative valuation, and scenario analysis where appropriate.
6. Define catalysts and risks
State what could reprice the security and what evidence would invalidate the thesis.