Fire Your Stock Analyst!: Analyzing Stocks on Your Own

Value Analysis Process

Although different in detail, the value and growth analyses processes follow the same 11 steps.

1.	Analyze analysts’ data
2.	Examine current valuation
3.	Set target prices
4.	Evaluate industry
5.	Analyze business plan
6.	Assess management quality
7.	Gauge financial health
8.	Analyze profitability and growth trends
9.	Search for red flags
10.	Examine ownership
11.	Check the price chart

Each step employs a corresponding analysis tool explained in detail in Part 2. The procedures described in this chapter assume that you’re already familiar with the analyses tools.

The chapter concludes with deciding when to sell, a key decision for value investors.

Start with at least 10 and preferably 20 candidates so that you can compare ...