Process checklist + terms

All six process steps plus a mini-glossary of the twelve most important terms.

The whole process on one page — plus the twelve terms you need to run it.

The six steps

☐Step 1 — Quick test: is a deeper analysis worthwhile at all?
☐Step 2 — Stop-or-go: check the hard exclusion criteria and red flags.
☐Step 3 — Financial traffic light: place the six metrics.
☐Step 4 — Business model: how, and how reliably, does the company make money?
☐Step 5 — Valuation: price against substance, earnings power and outlook.
☐Step 6 — Portfolio: set position size, risk and monitoring.

Terms at a glance

EV/EBIT	Enterprise value relative to operating profit.
EV/EBITDA	Enterprise value to operating profit before depreciation.
P/E	Price-to-earnings: price per euro of annual profit.
Free cash flow	Cash left over after investments.
Equity ratio	Share of equity in the balance-sheet total.
Free float	Freely tradable share of the stock (not tightly held).
Value trap	Optically cheap, but with permanently falling value.
Reverse DCF	Backs out the expectation priced into the share.
Net debt	Financial debt minus cash and equivalents.
Market cap	Market value: price × number of shares.
Going-concern qualification	Auditor's doubt about the company continuing.
Capital increase	New shares for fresh capital — dilutes existing holders.

Education only, not investment advice. Ranges and thresholds are didactic orientation values; sector and business model always matter. © Aktienwissen · aktienwissen.online