Research Methodology

Investment Philosophy: PMV with a Catalyst™

Private Market Value (PMV): The price an informed industrialist would pay for the entire company

Catalyst: An event to surface the value

Gabelli & Company's approach to fundamental analysis focuses on a company's free cash flow, earnings per share, and private market value, taking into account on and off balance sheet assets and liabilities.

Our analysts follow industries on a global basis, developing an operational understanding of each company and effectively becoming an expert. The analysts hone this expertise by continually visiting and speaking with company management, suppliers, competitors, and customers. The objective of this process is to identity companies that trade at a significant discount to their Private Market Value.

We examine industry dynamics and search for potential events or catalysts that may "unlock" value. We make recommendations to buy or sell as new information is analyzed, discussed, and assimilated. Our research typically offers the longer-term viewpoint of a strategic or financial buyer. This methodology has historically led us to identify a fair number of takeover targets, which often lead to bidding wars, recapitalizations, and going-private transactions.

We continue to provide our clients with new ideas that come from our intense, focused, and consistent research process.

  • Intense
    Our research strategy begins with an intense comprehensive analysis.
      1. Gather the data through public information, meetings with management, and company site visits.
      2. Array in proprietary spreadsheets
      3. Project the next 5 years focusing on cash-flow
      4. Interpret

    1. Focused
      The Investment Case is communicated through published notes in a focused 2-page format to reinforce analysis. There is a daily morning meeting and weekly sector group meetings to discuss company news, management meetings, or sector events impacting company or sector thesis to stay current in our research ideas.
    2. Consistent
      We have consistently applied our research methodology, PMV with a Catalyst™ for the past 36 years, and we continue to deliver money-making ideas to our clients.

    3.  

      G.research, LLC, an institutional research and brokerage firm, is a subsidiary of GAMCO Investors, Inc. (NYSE:GBL). Gabelli & Company is the marketing name for the registered broker dealer G.research, LLC.
      G.research, LLC, One Corporate Center Rye, NY 10580. Member of FINRA and SIPC.