Since work on the 13F Screener has kept me busy, I haven't had time to do a formal writeup of my most-recent investment—Viad Corp (VVI). While only a 1.5% position, it's a good company trading at a very reasonable price, and I may buy more. But rather than do a full writeup, this time I'm posting a:
- VVI "Living Document" (running overview of operations, financials, management, valuation, etc.)
- VVI Valuation Model (pro forma financials, DCF, margin analysis, etc.)
Whenever I research a new company, I'll start by creating these two documents, which I then edit and add to as events and circumstances change. For the Living Document, I'll add links to other analyst write-ups, interesting reports or articles about the company/industry, interviews with management, and investor presentations. I'll also include a running list of highlights/lowlights from conference calls,10-Ks, and 10-Qs to see if management actually does what they say they're going to do.
For the Valuation Model , I create historical and pro forma financial statements, making conservative adjustments and estimates. Then I'll run a few models (e.g., DCF, Residual Earnings, EV/EBITDA) at various margin and growth rate assumptions. The goal here isn't to come up with an exact share price or multiple, but rather to see what range of values are likely, and if the current price affords a healthy margin of safety.
For Viad, I've published both documents below; alternatively, the Google Docs versions can be accessed via the links above.Read More