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Companies need highly qualified management to execute a plan to create long-term shareholder value, even if it comes at the expense of short-term results. Looking more closely at the Bear Case scenario will help one to have a more balanced view than just focusing on the potential upside in the Bull Case scenario. In addition to our cash flow-based analysis we often use a comparables approach to make snapshot comparisons between similar companies within industries or to measure value versus sector or market averages. Investors can use it for identifying and analyzing ongoing or future events that will have a significant impact on performance of publicly traded stocks. Identify important events short and longer term in duration that could be catalysts to cause the stock to perform significantly different than its peers or the broader market, i. Once a position is taken, the Bull Case will help to avoid premature selling.

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But we also try to use specific information about the case to adjust the baseline prediction, if there are particular reasons to expect the optimistic bias to be more or less pronounced in this project than in others of the same type.

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Companies cannot survive if they are not profitable. Our Leadership rating represents an assessment of the ability of the board and executive team to lead the company in the best interests of the shareholders. The structural growth component can be driven by secular market trends, technological leadership, a superior business model or any type of durable competitive advantage. Companies with a dispersed ownership structure without a clear controlling shareholder have historically performed worse than the market in general over time. Investors can use it for identifying and analyzing ongoing or future events that will have a significant impact on performance of publicly traded stocks. Yet price and value are two very distinct concepts. In dealing with the future, we think about four things:

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