Methodology
Stock analysis methodology
Objective, inputs, calculation, interpretation, assumptions, limitations and data sources.
Answer
Vestmind analyses a listed company by assembling its filings, disclosures, reported financials and price history, normalising them so periods and peers are comparable, assessing quality across a full cycle, and stating both the investment case and the case against it from the same evidence — with every figure carrying its source and period.
Objective
To do the assembly and comparison work completely and consistently, so the investor's effort goes into judgement rather than into collection.
Inputs
- Company filings and exchange disclosures.
- Reported financial statements across at least a full business cycle where available.
- Price and volume history.
- Published analyst estimates, treated as one input with a known directional bias.
Calculation
- Normalise. Financials are restated onto a consistent basis so that a reporting-standard change or a mid-year acquisition does not break comparability with the company's own history or with peers.
- Quality. Return on capital employed, operating margin and its stability, cash conversion, and leverage, each read across the full period rather than the most recent quarters.
- Peer set. Comparable companies selected on business model rather than on index membership, and the same metrics computed for each.
- Valuation zones. Ranges derived from explicit stated assumptions about growth, margin and exit multiple. The assumptions are shown and can be changed.
- Case and counter-case. The investment thesis and the specific conditions that would make it wrong, written from the same evidence.
- Change. The material differences since the previous analysis, listed separately.
Interpretation
A valuation zone is a conditional statement: this range follows if these assumptions hold. It is not a target price and is not a forecast.
Analyst consensus is reported as what the sell side expects, not as a verdict.
No buy, sell or hold rating is produced. Vestmind is not a registered investment adviser.
Assumptions
- Filed financial statements are accurate as filed.
- The peer set is comparable on business model.
- The stated valuation assumptions are the investor's to accept or reject.
Limitations
- Accounting quality cannot be verified beyond what is disclosed. A misstated financial statement is analysed as filed.
- No method can anticipate a regulatory change, a competitive shock or a governance failure.
- History does not establish what a business will do next, and the quality assessment is explicitly backward-looking.
- Coverage depends on disclosure. A company with limited public financial history is analysed with correspondingly limited confidence, and the analysis says so.
Sources
- National Stock Exchange of India — listed company disclosures and index constituents
- Securities and Exchange Board of India (SEBI)
How Vestmind does this
VestCall is Vestmind's AI stock analysis product. It assembles a complete view of a listed Indian company — business quality, financial history, valuation zones, analyst consensus, the investment case and the risks against it — and states what changed and why it matters.