Our Process
Modena follows a clear and disciplined framework to identify promising companies, conduct in-depth research, and make strategic investments that align with our vision and values.
Step 1: Finding a Company
​Modena uses Finviz, an online stock screener with over 70 customizable filters, to efficiently identify companies that match our investment profile.
Example: Energy Company Screening
Metrics
Market Cap: >$3B
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EV/EBITDA: <8x
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Price/Free Cash Flow: <15x
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Debt-to-Equity: <50%
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Dividend Payout Ratio: <70%
EPS Growth Next 5 Years: 3–5%
Step 2: Valuation Analysis
After identifying a company that meets our screening criteria, we conduct a valuation analysis using a discounted cash flow (DCF) model to estimate its intrinsic value.
Modena sources its financial data used in building valuation models from Capital IQ
Step 3: Investment Thesis
If a company’s valuation is compelling, we develop an investment pitch to present our thesis.
Step 4: Decision/Investment
The final step, after identifying, analyzing, and pitching a company, is determining whether Modena will go through with an investment.