How to Value a Stock
A one-hour, fundamentals-first course that teaches you how to value a stock using cash flows, free cash flow per share, valuation multiples, and margin of safety—using real examples and simple, clear steps.
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)