useful checklists and templates tailored for stock investing. These tools will help you evaluate stocks, create a structured investment plan, and monitor your portfolio.
Purpose: Use this checklist to evaluate individual stocks before investing.
| Category | Criteria | Yes/No | Notes |
|--------------------------|----------------------------------------|------------|--------------------------------------|
| Company Overview | Do I understand the company’s business model? | | [E.g., How does the company make money?] |
| | Is the company an industry leader or disruptor? | | [E.g., Competitive advantage or market share.] |
| | Are the company’s products/services in demand? | | [E.g., Growing or stable markets?] |
| Financial Metrics | Is the company consistently profitable? | | [Review net income and profit margins.] |
| | Are revenue and earnings growing YoY? | | [Check trends in financial reports.] |
| | Is the debt-to-equity ratio manageable? | | [D/E ratio <1 for most industries.] |
| | Does the company generate positive free cash flow (FCF)? | | [Evaluate FCF for sustainability.] |
| | Are valuation metrics (P/E, P/S) reasonable? | | [Compare with peers or industry averages.] |
| Market Position | Does the company have a strong competitive moat? | | [E.g., Brand, patents, economies of scale.] |
| | Is the industry growing? | | [E.g., AI, renewable energy.] |
| | Are there risks from competitors or regulation? | | [Identify market threats.] |
| Dividends (if applicable) | Does the company pay dividends? | | [Review dividend yield and payout ratio.] |
| | Is the dividend payout sustainable? | | [Payout ratio <70% is ideal.] |
| Management & Governance | Does the management team have a good track record? | | [Look for innovation and integrity.] |
| | Is the company transparent with investors? | | [Review annual reports and guidance.] |
| Overall Decision | Does the stock fit my portfolio and goals? | | |
Purpose: Organize and track how your capital is allocated across stocks and other assets.
| Category | Allocation % | Investment ($) | Target % | Notes |
|------------------------|------------------|--------------------|--------------|--------------------------------------|
| Growth Stocks | [E.g., 40%] | [$10,000] | [50%] | [E.g., Tech stocks like AAPL, TSLA.] |
| Dividend Stocks | [E.g., 20%] | [$5,000] | [20%] | [E.g., JNJ, PG for income.] |
| Index Funds/ETFs | [E.g., 30%] | [$7,500] | [20%] | [E.g., S&P 500 ETF (VOO).] |
| International Stocks | [E.g., 10%] | [$2,500] | [10%] | [E.g., Emerging markets (VWO).] |
| Total Portfolio | 100% | [$25,000] | 100% | |
Purpose: Define clear investment goals based on your time horizon and risk tolerance.
| Goal | Time Horizon | Investment Type | Risk Tolerance | Notes |
|-------------------------|---------------------|-------------------------------------|--------------------|--------------------------------------|
| Retirement Savings | Long-term (20+ yrs) | Growth stocks, index funds | High | Reinvest dividends for compounding. |
| Down Payment for a House| Medium-term (5–10 yrs) | Balanced portfolio (stocks & bonds) | Moderate | Focus on stable, dividend stocks. |
| Vacation Fund | Short-term (<3 yrs) | Cash equivalents, bond ETFs | Low | Prioritize safety over returns. |
Purpose: Use this checklist to track and review your stocks periodically.
| Task | Frequency | Completed (?/?) | Notes |
|--------------------------------------|------------------|---------------------|---------------------------------|
| Check quarterly earnings reports | Quarterly | | Look for revenue, profit trends. |
| Monitor stock price performance | Monthly | | Compare against the market index. |
| Review industry news | Weekly | | Identify changes in market trends. |
| Assess valuation metrics (P/E, P/B) | Quarterly | | Ensure the stock isn’t overvalued. |
| Evaluate dividends (if applicable) | Annually | | Ensure dividends are sustainable. |
| Rebalance portfolio | Annually | | Adjust allocations as needed. |
Purpose: Organize financial metrics to evaluate a stock’s performance.
| Metric | Company Data | Industry Average | Notes |
|-------------------------|------------------|-----------------------|--------------------------------------|
| Revenue Growth (YoY %) | [E.g., 12%] | [E.g., 8%] | High growth signals strong demand. |
| Net Income Growth (YoY %)| [E.g., 10%] | [E.g., 7%] | Positive growth shows profitability. |
| Gross Margin (%) | [E.g., 60%] | [E.g., 55%] | Higher margins indicate efficiency. |
| Operating Margin (%) | [E.g., 30%] | [E.g., 25%] | Strong profitability metric. |
| P/E Ratio | [E.g., 20] | [E.g., 25] | Lower P/E may signal undervaluation. |
| Dividend Yield (%) | [E.g., 3.5%] | [E.g., 2.5%] | High yield should align with sustainability. |
Purpose: Compare multiple stocks to identify the best option for investment.
| Stock | Metric | Stock A | Stock B | Stock C | Best Option |
|--------------------------|------------------|------------------------|-----------------------|-----------------------|-----------------------|
| Company Name | | [E.g., Alphabet] | [E.g., Meta] | [E.g., Microsoft] | |
| Revenue Growth (YoY %) | | [12%] | [20%] | [15%] | |
| P/E Ratio | | [28] | [20] | [35] | |
| Dividend Yield (%) | | [0%] | [0%] | [1%] | |
| Net Income Growth (YoY %) | | [10%] | [8%] | [12%] | |
| Debt-to-Equity Ratio | | [0.1] | [0.5] | [0.2] | |
Purpose: Mitigate risks and protect your portfolio during market fluctuations.
| Task | Action | Completed (?/?) | Notes |
|-------------------------------------|------------------------------|---------------------|--------------------------------------|
| Diversify across sectors | Invest in 5+ industries | | Include tech, healthcare, and energy. |
| Limit exposure to single stock | Keep <10% in one stock | | Avoid over-concentration risks. |
| Set stop-loss orders | Automate sell thresholds | | Example: Sell if price drops 20%. |
| Build an emergency fund | Keep 3–6 months' expenses | | Avoid forced liquidation in a downturn. |
| Avoid emotional decisions | Stick to your investment plan| | Use a checklist to validate decisions.|
Purpose: Calculate whether a stock is undervalued or overvalued.
| Metric | Formula | Result | Interpretation |
|---------------------------|----------------------------------|-----------------|----------------------------------------|
| Intrinsic Value | ( \frac{{FCF}} / {{(WACC - g)}} ) | [Insert Value] | Compare with the current stock price. |
| P/E Ratio | ( \frac{{Stock Price}} / {{EPS}} ) | [Insert Value] | Lower than peers = undervalued. |
| Dividend Discount Model (DDM) | ( \frac{{Dividend}} / {{(r - g)}} ) | [Insert Value] | Use for dividend-paying stocks. |
| Price-to-Book Ratio (P/B) | ( \frac{{Market Price}} / {{Book Value Per Share}} ) | [Insert Value] | <1 may signal undervaluation. |
Purpose: Review your overall investment performance periodically.
| Category | Target Return (%) | Actual Return (%) | Adjustments Needed |
|-------------------------|-----------------------|------------------------|--------------------------------------|
| Growth Stocks | [E.g., 12%] | [E.g., 15%] | None. |
| Dividend Portfolio | [E.g., 5%] | [E.g., 4%] | Add high-yield stocks. |
| ETFs | [E.g., 8%] | [E.g., 7.5%] | Evaluate expense ratios. |
| Overall Portfolio Return| [E.g., 10%] | [E.g., 9%] | Increase exposure to growth sectors.|