bmpb.ai Framework Components
- business: Evaluate the quality of the business, including its profitability, brand, and growth potential.
- management: Assess the quality of the management team, including their experience, track record, and alignment with shareholder interests.
- price vs. valuation: Compare the current stock price to the company's intrinsic value.
- balance sheet: Analyze the company's financial health, including its debt levels, cash flow, and asset quality.
Score each component from 1 to 10, with 10 being the best. Example:
- business: 9 (High-profit margins, strong brand, and many opportunities to reinvest capital at high rates of return)
- management: 8 (Experienced and well-respected management team with a proven track record of success for capital allocation)
- price vs. valuation: 7 (Stock price is below the company's intrinsic value)
- balance sheet: 7 (Healthy balance sheet with net cash or moderate debt levels, good free cash flow, and if the company has debt a high interest coverage ratio (EBIT/I)
Overall bmpb.ai score: 7.75