There are many steps in calculating the fair value of a company. However, before we even do that, it is imperative to know how a company earns its profit. Does it do that by selling to consumers? licensing its technology to other companies? or extracting natural resources from the ground?The sensible way to do it is by reading the company's annual report. What is an annual report? Annual report is yearly publication by public companies to better inform investor about the company's line of busine.