Njosh

Risk

For now go to Morningstar balance sheet and look for interest bearing debt -short term debt and long term debt; and total equity

% of Debt (cost of debt) and % of Equity (cost of equity)

Low risk narratives (business) show up as a lower discount rate. High debt narrative

market share (For example -dominant market share if greater than 40%, 50%). Go to IBISWorld.

Revenue (declining /Growing)

Go to IBISWorld.

Narrative of the Company. growth, market share and high profit margin??

1. Industry

2. Market Share info

3. Mature or growth company

4. Uic.edu – library – database https://clients1-ibisworld-com.proxy.cc.uic.edu/reports/us/industry/ataglance.aspx?entid=226

5.

Cash..

Cumulative cash/pays it in dividends ( statement of cash flow )/ reinvest it

reinvestment rate

capital intensive companies and growth companies spend more on Capital.

Sales to capital ratio = revenue/(BV of Equity + interest bearing BV of Debt – Cash)

Morningstar.com

How competition/product/industry is affecting margins. (Strong and sustainable competitive advantages show up as a combination of high market share and high operating margins. ) Go to IBISWorld.