10 Points FA Analysis

1. ROIC > WACC

2. Gni > Gic

3. For +Gintrinsic_value:

[ (1+Gni)² ÷ (1+Gic) ] > 1

Gni = Net Income Growth ratio

Gic = Invested Capital Growth ratio

4. PE/ROIC < 1, undervalued

5. Asset Quality

C. Assets > Non C. Asset

Total Eq < C. Asset

C. Asset > Total Liability

6. Net Income +ve growth QoQ & YoY

7. Intrinsic Value, P = EPSxROIC

P/E(fair) = ROIC

8. ROIC
= 100 x NI/(T. Eq+T. Borrw)
= ROE x ( 1+D/E)

9. D/E = T. Borrw/T. Eq

10. +Grevenue QoQ & YoY