Doesn't matter what's the market cap is - micro or large, the quality of any business is never unseen. You screen through the last 5-10 years of balance sheet and cash flows and you'd know what can and cannot compound wealth. Narrative alone is useless. Numbers have to match.

@Jeevan_rjv @soicfinance @itsTarH No. Not those ones. Editas, Intellia etc are more on the CRISPR patents and royalty play.

@harindersnanda @ishmohit1 @soicfinance @punitbansal14 @nison_steve Both should do well. Prefer Zoetis for leadership, best in class margins and management's execution. Elanco should improve with Bayer Animal boosting companion proportion in its overall mix.

#SeQuent will under-perform next 1-2 years due to #ESOP (unless a surprise M&A happens)

When a stock is trading around 15-20x sales - ask why would an accident not happen? What could be the valuations damage in that case?

Reverse DCF calculator is now available on Tijori

You can edit the earnings field, discount rate and terminal multiple to any value you like. Below is an example of Astral Pipes

Hope its useful to gauge optimism being baked into the current price!

https://t.co/Y6iV8LVLzT

@Namajapa In my experience value stocks are the ones with undervalued optionality - the possibility things get unexpectedly better. Expensive story stocks by contrast anticipate and price in all manner of good future outcomes long before they are actually delivered/deliverable.

1/ @mjmauboussin's book Expectations Investing is a masterclass in valuation & strategy

His framework uses price-implied expectations to assess companies, an elegant way to invert valuation

https://t.co/kESplMN3nW

To practice these concepts, I wrote a case study on Chipotle⤵️

2/ Chipotle is the leading fast casual restaurant chain across the US, with almost 3,000 owned & operated locations

They benefit from strong unit economics and a trusted brand

We'll discuss consensus estimates, competitive landscape, and expected

3/ We must first identify the price-implied expectations based on key value drivers

After finding the consensus estimates, investors can seek opportunities in the expectations - looking for a divergence from the market's assumptions

Let's start with Chipotle's sales growth

4/ Chipotle has grown revenues from $3.9B to $7.55B over the past 5 years, at a 5 year CAGR of 14.1%

Analysts estimate a 13.7% consensus growth rate based on 5-7% same store sales growth, 8% additional store openings per year, and steady digital sales contribution

5/ Next is operating profit margin, which measures profitability from core operations

Chipotle has slowly been growing its margin, now at 10.67%

Analysts expect high margins of 15.75%, with incremental profits from digital orders and unit-level margin growth contributing

@soicfinance @suru27 Indeed. For later, industry/sector has to be within your circle of competence to judge the turnaround correctly.

Because according to Warren Buffett
"Both our operating and investment experience cause us to conclude that turnarounds seldom turn"

@unseenvalue Got it sir 🙏