
- What the business earns
- What cash flows it can produce
- What those cash flows are worth today
- How that value compares to the stock price
- Financial statements
- Business model strength
- Competitive advantage
- Long-term growth potential
- Beginners who want a clear valuation framework
- Investors who understand basics but lack structure
- Professionals looking to evaluate businesses more rigorously
- Long-term investors focused on fundamentals
- Stock tips
- Market timing
- Speculative strategies
- Structured valuation frameworks
- Practical application
- Rational decision-making
- Estimate the intrinsic value of a company
- Analyze whether a stock is overvalued or undervalued
- Build valuation models with confidence
- Make more disciplined investment decisions
- Welcome to How to Value a Stock
- Learning Objectives
- Introduction and How to Value a Stock
- Value a Stock Like a Bond
- Bond Coupon
- Concept of Present Value
- Bond Valuation Example
- Quiz — From Bonds to Present Value
- Learning Objectives:
- Equity Coupon “Free” Cash Flow Per Share
- Formula Reference Sheet (Downloadable PDF)
- Steps in the Process – To Calculate Free Cash Flow per Share
- Principles of Calculating Free Cash Flow per Share
- P & L Statement – Where to find the elements to calculate Free Cash Flow per share
- Elements of Free Cash Flow
- Diluted Shares Outstanding
- Calculating a Valuation Multiple
- Quiz — Free Cash Flow & Equity Coupon
- Learning Objectives:
- Example using Lowe’s Companies, Inc
- Example Details using Yahoo! Finance
- Considerations
- Quiz — Example, Yield & Margin of Safety
- Practice: Try This Framework Yourself
- Learning Objectives:
- Lesson Summary
- Summary, Margin of Safety & Next Steps
- Continue Building Your Investment Framework
- Glossary
- Full Course Transcript (Download)
