PA Research is a buy-side investment research firm focusing on special situations, as well as long-term investments in small-cap and mid-cap stocks with strong competitive advantages. Our approach does not rely on metrics like market beta or CAPM, we simply use an opportunity cost that we find reasonable. We use straightforward earnings and book value multiples with reasonable payout assumptions to value businesses. For stable and predictable businesses, we aim to discount future cash flows to their present value, ensuring our estimates are grounded in a clear understanding of the underlying drivers. Our recommendations range from Strong Buy to Strong Sell, depending on the opportunity, with a preference for long-only investments expected to compound at an annual rate of 15% over the long term.Favorite authors:Seth Klarman, Peter Lynch, Howard Marks, Philip Fisher
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