Macro, market structure the business: factors that determine returns

Stock prices are primarily determined by

Inflation. Affects costs as well as ccy. Need to ask if ccy looks expensive

Real gdp growth. Which determines ernings growth if sales are in the that country (or the countries they do business in)

Multiple, ie the price you pay

If sell abroad to economies that are growing strongly
Have costs in a weak growth economy where wage growth is slack
And your performance is measured in a weakening ccy
Then you have an interesting combination

This is what GE has!

The above are the macro factors

Then add on the market structure factors particular to a certain industry (i.e. may have a stable structure which gives more visibility on future free cash flow generation)

Add on individual company factors such as management, the price, allocation of capital, the business model, cost management, pricing power, sales force