A practical checklist for evaluating a stock before doing deeper research

Educational overview, not a recommendation.

Before spending time on a company, I find it useful to work through a repeatable checklist:

1. Business: What does it sell, who pays, and what could make demand durable?
2. Financials: Compare revenue growth, gross margin, operating margin, free cash flow, and balance-sheet leverage over several years.
3. Valuation: State the metric (P/E, EV/EBIT, FCF yield, etc.), the denominator, and the assumptions behind it. A low multiple can reflect real risk.
4. Catalysts and risks: Write down what could change the thesis and what evidence would invalidate it.
5. Expectations: Compare the current price with a range of outcomes rather than a single target.
6. Position/risk plan: Decide in advance what would change your view, and size risk accordingly.

A checklist does not remove uncertainty; it makes the uncertainty visible. What step do you think investors most often skip?