8 steps to research a company stock to invest in

Last post I was sharing how to invest in real estate. I still kept trying to understand why people are still buying property in 2025. The rental yield is not that great after considering cost of borrowing. This asset is hard to sell (illiquid) even when there is capital appreciation.

So far base on my calculation, buying into REIT in Singapore which yield ~5% dividend and 3% capital gain per annumn seem like a better deal compare to buying real estate. Less headache compare to managing tenant, pay management fee, maintainance of building, lawyer and agent fee, stamp duty and property tax bla bla bla.....

So in 2025, I am still hovering around stock and REIT investing at the moment. As interest rate for FD is coming down to less than 2% currently (Jul 2025), it make sense to invest into Singapore stock for dividend payout. Singapore blue chip has a track record of being able to fight inflation and dividend is stable over the year. I can fight inflation and also get some pocket money once every other months.

But choosing which stock to buy can be a headache. Take for example; out of all the local banks in Singapore, which one has better performance. For that usually I use Moomoo app free analytis tools. But I still want to know some fundamental how to assess a company fair value.

No. I do not want to use Warran Buffet method. Too complex and too technical. Book is always so thick and boring. Also as he already retire, his method can be used as a reference but no longer using his method like a bible. Although the intrinic value thingie is evergreen knowledge but I just can't find anyone who can explain it simplier to me.

Yes. I need something simplier. My past job required me to write credit paper for SME business owner to obtain bank loans and facilities. We have to put up a paper for the credit team to review and approve.

There is a systematic way to assess a company background, corporate structure, cash flow analysis, debt ratio, financial analysis and financial spreading for their business trade cycle. It is fun and very systematic to do and follow. The purpose is to obtain some financial ratios YoY and providing justification for potential risk.

I love my job!!!

So..... Is there a systematic way to assess company for the stock purchase? I found online there is a video that provide 8 steps to assess a company whether is it good enough for investing.

Summarize of this video below, I will also provide useful links to find all these informations!!! Thanks me later :)

Business background

Business section 10k mentioned in the video is US specific, provides a detailed overview of the company’s operations, products, customers, markets, and competitive environment; for Singapore companies, similar disclosures can be found in their annual reports on the Singapore Exchange (SGX) security listing > under the Company Information tab.

Management Discussion and Analysis (MD&A)

SGX Listing Rules require Singapore listed companies to provide an MD&A section where management discusses the business performance, risks, future outlook, and other non-financial factors impacting the company. This disclosure helps investors and stakeholders gain qualitative insights beyond financial statements. (SGinvestors.io) > financial statements

Financial statement analysis

The main point of financial statement analysis is to evaluate a company’s performance or value through a company’s balance sheet, income statement, or statement of cash flows. By using a number of techniques, such as horizontal, vertical, or ratio analysis, investors may develop a more nuanced picture of a company’s financial profile. (SGX > financial statement)

Company presentation slide

CEO presentation and earning call. This are usually distributed in AGM and seminar talk where CEO will go over the slide and comment on the earning reports. (Tipsrank.com > earning call & company decks)

Competitor analysis

By conducting a competitive market analysis you’ll begin to understand where the company you’re analyzing ranks among its competitors. This will help you comprehend its advantages and how well it’s serving its customers. (Tipsrank.com > more > similar stocks)

Determine fair value

Fair value is a broad measure of an asset's intrinsic worth. It requires determining the right price between two parties depending on their interests, risk factors, and future goals for the asset. (Simplywall.st > Share Price vs Fair Value)

Identify drivers for the stock

Look at the graph for big movements like a huge drop or huge increase. Identify the date and google the news related to understand what drive the price with such big movement. (try using AI prompts and AI research the result etc using Deepseek)

Wait for a buying opportunity

Once you like the stock you pick and determined the fair value. Add in safety margin, determine your buy price, take profit and stop loss ratio. As a price alert on your broker platform. When the price hit you get alert on your phone go in an buy the dip!!! For that I am using Moomoo.

Conclusion

I play my stock on UOB Kay Hian if I want to have it on CDP linked which I usually do > 3 years kind of long term investing. For short term speculatiion I use Moomoo as I am able to trade fractional shares, lower fee for frequent buying and selling. Usually I buy the stock dip during market downturn. At least 10% discounting and take profit once the stock shoot up to normal again.

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