Our quest for fair value is hinged on the following:

• Markets are not informationally efficient: those who act rapidly and intelligently to the release of new information will be rewarded.
• Companies do not enjoy their competitive advantages indefinitely.
• Shareholders’ value is driven by growth in revenue.

Our Analysts follow a six step process in arriving at the intrinsic value of a stock:

• Understand the business: Businesses differ, therefore we see the need to evaluate a company in terms of its industry prospects, competitive position, and corporate strategies.
• Forecast company performance: Forecast of items on the income statement and balance sheet are carried out with gross revenue as the value driver.
• Select the appropriate valuation model: Models are selected based on their consistency with the characteristics of the company being valued, quality of data available, and their relevance to the purpose of the valuation.
• Convert forecast to a valuation: Valuation is carried out predominantly with Discounted Cash Flow (DCF) models.
• Make an investment recommendation: investment recommendations flow from our valuation models and range from BUY,HOLD to a SELL.
• Review on an on-going basis to reflect new results and policies.