Warren Buffett Value Investing Cheat Sheet — A handy check-list I compiled

🗣️ Breaking News: Why Intapp Stock Was Surging This Week

Intapp (NASDAQ: INTA), a lesser-known player in the fintech sector, has gained significant attention from investors following a strong earnings report. For its fiscal fourth quarter of 2024, the company reported revenue exceeding $114 million, marking a 21% year-over-year increase and surpassing analyst expectations. The majority of this revenue stemmed from software-as-a-service (SaaS) and support activities, which improved by 25% to $85 million. Additionally, Intapp achieved a non-GAAP profit of $11.9 million, or $0.15 per share, significantly higher than both the previous year's profit and analyst forecasts.

Looking ahead, Intapp provided guidance for its current quarter and the entirety of fiscal 2025, expecting revenue between $117.2 million and $118.2 million, with adjusted net income projected at $0.12 to $0.14 per share. Despite this positive outlook, it's worth noting that The Motley Fool Stock Advisor has not included Intapp in its list of top investment recommendations, which features stocks believed to offer substantial returns. Investors are encouraged to carefully consider their options before investing, especially given the historical success of some stocks recommended by the service.

Stay informed with today's rundown:

Today, we delve into the “Warren Buffett Value Investing Cheat Sheet — A handy check-list I compiled”👇

Below is a handy check-list for valuing investing the old-school Warren Buffett way. I thought you might find it useful.

All the stats are derived from Buffett’s advice over the years through shareholder letters and other sources. In my opinion, it is nearly impossible for a company to tick all of these boxes in the current market, but they are useful guidelines.

Anything else you guys would add to the list? What other metrics / checks do you use?

• Debt/Equity < 0.5

• Current Ratio > 1.5 && < 2.5

• Price/Book < 1.5

• ROE > 8% consistent/increasing over last 10 yrs

• ROA > 6%

• Stable Book Value growth

• Stable EPS growth

• Stable Dividend growth

• Moat

• Interest coverage ratio (Income from operations/Interest expense) > 5X operating income

• Inventory turnover ratio (Cost of Revenue/Inventory) > 4

• Free-cash-flow-to-revenue ({Operating cash flow + property, plant & equipment} / Revenue) > 5%

• P/E Ratio < 15

• S&P rating > BB

• Reasonable Margin of safety (DCF intrinsic value/current price)

You can save up to 100% on a Tradingview subscription with my refer-a-friend link. When you get there, click on the Tradingview icon on the top-left of the page to get to the free plan if that’s what you want.