A business should be understood before it is valued.
Behind every valuation is a business story: how the company earns money, why customers stay, how much cash the business can generate, how much must be reinvested, and whether future growth is likely to create real economic value.
Harry Pattikawa’s valuation approach starts with that business story and then connects it to the numbers. The reports look beyond accounting profit and focus on cash flow, business quality, financial resilience, reinvestment, risk and long-term value creation.
A central part of the approach is Free Cash Flow to Equity, market-implied cost of equity, continuing value and the assumptions embedded in observable market prices. These concepts can sound technical, but the purpose is simple: to make valuation easier to follow, easier to question and easier to discuss.
Traditional CAPM and WACC-based methods remain important in finance, but they can be complex, assumption-heavy and difficult to explain clearly. The reports therefore also use implied cost of equity analysis as a practical and transparent way to examine the return assumptions reflected in market prices and to assess how those assumptions relate to the economics of the underlying business.