Analysing the Five elements/characteristics of the company shows a clear view of whether the company has any investing viability. My analysis shows that BAE System qualifies only 3/5 elements. Where the company failed the cash conversion characteristic and stability characteristic.
However, the company is currently fairly priced so there is a potential for those who want to speculate on the growth of the company. In the chart, I have marked Overvalued and Undervalued zone based on my price forecasting (taking into account any future earnings) for the year 2022
Five Element Analysis checks the profitability, cash conversion, stability, value and price of a company. A good company will have all the five characteristics. In my opinion, the companies with all five characteristics is a good viable investment, but as always do your own research.