Value stocks like a professional
Understand the business, then the financials, then your own projection — in that order. · 10 min
Qualitative, then quantitative, then projections
If you cannot explain how the company makes money, do not model it yet. If the financials do not support the story, do not hide that in a spreadsheet.
A 3-year projection is a set of assumptions you can defend: revenue growth, margins, shares, and the multiple a sane buyer might pay. Change the assumptions. Watch the price move. That is the point.