Interactive Decision Flowchart for Identifying Value Traps and Hidden Gems
flowchart TD
A([Start Analysis]) --> B{Revenue / Profit
Stable or Growing?}
B -- No --> C[[Value Trap]]
B -- Yes --> D{Competitive
Position Intact?}
D -- No --> C
D -- Yes --> E{Balance Sheet
Healthy?}
E -- No --> C
E -- Yes --> F{Free Cash Flow
Sufficient?}
F -- No --> C
F -- Yes --> G{Strong & Credible
Management?}
G -- No --> C
G -- Yes --> H{Catalyst for
Recovery?}
H -- No --> C
H -- Yes --> I{Valuation Below
Intrinsic?}
I -- No --> C
I -- Yes --> J{Industry Not Facing
Structural Decline?}
J -- No --> C
J -- Yes --> K[[Potential Value
Investment]]
style A fill:#e3f2fd,stroke:#5470c6,stroke-width:2px,color:#24315e
style C fill:#ffebee,stroke:#c0392b,stroke-width:2px,color:#c0392b
style K fill:#e8f8f5,stroke:#16a085,stroke-width:2px,color:#16a085
style B fill:#e3f2fd,stroke:#5470c6,stroke-width:2px,color:#24315e
style D fill:#e3f2fd,stroke:#5470c6,stroke-width:2px,color:#24315e
style E fill:#e3f2fd,stroke:#5470c6,stroke-width:2px,color:#24315e
style F fill:#e3f2fd,stroke:#5470c6,stroke-width:2px,color:#24315e
style G fill:#e3f2fd,stroke:#5470c6,stroke-width:2px,color:#24315e
style H fill:#e3f2fd,stroke:#5470c6,stroke-width:2px,color:#24315e
style I fill:#e3f2fd,stroke:#5470c6,stroke-width:2px,color:#24315e
style J fill:#e3f2fd,stroke:#5470c6,stroke-width:2px,color:#24315e