Begin with the annual report and investor materials, but remember they present management’s perspective. Your task is to connect narrative with numbers.
Follow the economic engine
Identify customers, products, pricing, costs, competitors, and the reasons customers stay or leave. Then track revenue growth, margins, and free cash flow over time.
Inspect the balance sheet
Debt, cash, leases, working capital, and share issuance affect both resilience and shareholder outcomes.
Separate quality from price
A durable business can still disappoint if its valuation assumes unrealistically strong results. Compare the current price with a range of plausible outcomes.
Do your own research. This framework is general education and does not recommend any company or security.