myinvestingnotes.blogspot.my (Bullbear Buffett Stock Investing Notes)

Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.

Friday, 24 November 2023

HOW TO VALUE A COMPANY: 6 METHODS

1. Book Value

2. Discounted Cash Flows

3. Market Capitalization

4. Enterprise Value

5. EBITDA

6. Present Value of a Growing Perpetuity Formula

Additional notes:

Value of a Growing Perpetuity = Cash Flow / (Cost of Capital - Growth Rate)

In finance, growth is powerful.

https://online.hbs.edu/blog/post/how-to-value-a-company