Although different in detail, the value and growth analyses processes follow the same 11 steps.
Analyze analysts’ data
Examine current valuation
Set target prices
Analyze business plan
Assess management quality
Gauge financial health
Analyze profitability and growth trends
Search for red flags
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 ...