Valuation & Analysis (41)
Free educational guides covering every major investing topic. Each guide includes real examples, key terms, and actionable next steps.
Accounting Ratios: 15 Financial Ratios Every Investor Should Know
Learn 15 essential accounting ratios — PE ratio, debt-to-equity, ROE, ROA, current ratio, quick ratio, gross margin, operating margin, net profit margin,...
Accounting Ratios Guide — Key Financial Metrics for Investors
Learn essential accounting ratios for investment analysis: profitability ratios, liquidity ratios, leverage ratios, efficiency ratios, and valuation...
Balance Sheet Analysis: Understanding a Company's Financial Position
Learn how to read a balance sheet — assets (current, fixed, intangible), liabilities (current, long-term), and shareholders' equity.
Book Value vs Market Value: Key Differences Every Investor Should Know
Learn the difference between book value and market value — how book value reflects accounting equity, how market value reflects investor sentiment,...
Book Value: A Company's Net Worth on Paper
Learn about book value — total assets minus intangible assets and liabilities. How to use price-to-book (P/B) ratio to find undervalued stocks.
Breakeven Analysis Guide — How to Calculate When Your Business Becomes Profitable
Learn how to calculate breakeven point for your business: fixed vs variable costs, contribution margin, breakeven in units and revenue, margin of safety,...
Cash Flow Analysis: Following the Money
Learn how to read and analyze the cash flow statement — operating cash flow, investing cash flow, and financing cash flow.
Cash Flow Statement: Why Cash Flow Matters More Than Profit
Learn how to read a cash flow statement — operating vs investing vs financing cash flow, free cash flow calculation, cash conversion cycle, and why many...
Comparable Company Analysis: How to Value Stocks Using Peers
Learn how to perform comparable company analysis (comps) — identifying peer companies, selecting valuation multiples (P/E, EV/EBITDA, P/S), analyzing the...
DCF Analysis: Discounted Cash Flow Valuation Explained
Learn how to perform discounted cash flow (DCF) analysis — projecting free cash flows, calculating terminal value, determining the discount rate (WACC),...
DCF Analysis: How to Build a Discounted Cash Flow Model
Learn how to build a DCF model — projecting free cash flows, calculating terminal value using perpetuity growth or exit multiple, choosing the right...
DCF vs Comps: Which Valuation Method Should You Use?
Learn when to use DCF vs comparable company analysis — how DCF relies on intrinsic assumptions, how comps rely on market sentiment, why both methods...
DuPont Analysis: Decomposing Return on Equity
DuPont analysis breaks Return on Equity (ROE) into profit margin, asset turnover, and financial leverage.
Earnings Quality: How to Detect Accounting Manipulation and Red Flags
Learn how to assess earnings quality — accruals vs cash earnings, revenue recognition red flags, related-party transactions, channel stuffing, pension...
Enterprise Value: How to Calculate a Company's True Market Value
Learn how enterprise value works — EV formula (market cap + debt - cash), how EV differs from market cap, EV/EBITDA multiple, and why EV gives a more...
EV/EBITDA: The Preferred Valuation Metric for M&A and Debt-Heavy Companies
Learn how to use EV/EBITDA (Enterprise Value divided by Earnings Before Interest, Taxes, Depreciation, Amortization) to value companies.
EV/EBITDA Multiple: Why It's Better Than P/E for Many Companies
Learn how the EV/EBITDA multiple works — enterprise value divided by EBITDA, how it eliminates differences in capital structure and tax rates, typical...
Expected Return: How to Calculate a Portfolio's Expected Return
Learn how to calculate expected portfolio returns — the capital asset pricing model (CAPM), building expected returns from factor exposures, the equity...
Expected Return Calculator: How to Estimate Portfolio Returns
Learn how to calculate expected return using probability-weighted outcomes. Understand the Capital Asset Pricing Model (CAPM), historical averages, and...
Financial Modeling Guide: Building Projections That Drive Decisions
Learn the principles of financial modeling, including three-statement models, DCF valuation, scenario analysis, and error-checking best practices for...
Fundamental Analysis Checklist: A Step-by-Step Guide to Evaluating Stocks
Learn a complete fundamental analysis framework — revenue growth, profit margins, debt ratios, competitive advantages, management quality, valuation...
Fundamental Analysis: Evaluating a Company's True Worth
Learn the fundamentals of fundamental analysis — analyzing financial statements, competitive advantages, management quality, and economic moats.
Fundamental vs Technical Analysis: Choosing the Right Approach
Compare fundamental analysis and technical analysis. Fundamental analysis evaluates intrinsic value from financial statements and economic factors;...
Intrinsic Value: How to Calculate What a Stock Is Really Worth
Learn how to calculate a stock's intrinsic value — discounted cash flow (DCF) analysis, comparable company analysis (comps), asset-based valuation, margin...
Intrinsic Value: What a Company Is Really Worth
Learn how to calculate intrinsic value — the true worth of a company based on its fundamentals. Compare intrinsic value to market price to identify...
Market Value: What the Market Says a Company Is Worth
Learn about market value (market capitalization) — the total dollar value of a company's outstanding shares.
PEG Ratio: Price-to-Earnings Growth as a Valuation Tool
Learn how to use the PEG ratio (P/E divided by earnings growth rate) to value growth stocks. A PEG of 1.0 suggests fair value; below 1.
PEG Ratio: How to Value Growth Stocks Using Price/Earnings-to-Growth
Learn how the PEG ratio works — dividing P/E by earnings growth rate, how a PEG below 1 suggests undervaluation, PEG above 2 suggests overvaluation, and...
Price-to-Sales Ratio: Valuing Companies Without Earnings
Learn how to use the price-to-sales (P/S) ratio to value companies with negative or volatile earnings.
Profit and Loss Statement: Understanding the Income Statement
Learn how to read a profit and loss (P&L) statement — revenue, cost of goods sold, gross profit, operating expenses, operating income, net income, and EPS.
Profit & Loss Statement: How to Read an Income Statement Like an Analyst
Learn how to read a profit and loss statement — revenue vs costs, gross profit vs operating profit vs net income, EBITDA, non-GAAP measures, red flags,...
Risk-Adjusted Return: Sharpe Ratio, Sortino Ratio, and Alpha Explained
Learn how to measure risk-adjusted returns — Sharpe ratio, Sortino ratio, Treynor ratio, Jensen's alpha, information ratio, and which metric tells you if...
Risk-Adjusted Return Measures: Sharpe, Sortino, Treynor, and Jensen's Alpha
Risk-adjusted return measures allow investors to compare investments with different risk profiles. Learn the Sharpe ratio, Sortino ratio, Treynor ratio,...
Sensitivity Analysis in Finance: What-If Scenarios and Data Tables
Learn how sensitivity analysis reveals how changes in key assumptions affect valuation outputs. Understand one-way and two-way data tables, tornado...
Technical Analysis vs Fundamental Analysis: Which Approach Works Better?
Compare technical analysis and fundamental analysis — their core philosophies, timeframes, tools, success rates, and how to combine both approaches for...
Terminal Value: Estimating the Perpetuity Component of DCF Valuation
Learn how to calculate terminal value using the Gordon Growth Model and the exit multiple approach. Terminal value often comprises 60-80% of a DCF...
WACC: How the Weighted Average Cost of Capital Determines Investment Value
Learn how the weighted average cost of capital (WACC) works — how companies calculate their cost of equity, cost of debt, optimal capital structure, and...
Weighted Average Cost of Capital (WACC): A Complete Guide
Learn how to calculate and interpret the Weighted Average Cost of Capital (WACC). WACC represents the blended cost of debt and equity financing and is the...
Working Capital: How to Calculate and Analyze a Company's Short-Term Liquidity
Learn how working capital analysis works — current ratio, quick ratio, cash conversion cycle, days sales outstanding, days inventory outstanding, and how...
Working Capital: The Fuel for Daily Operations
Learn about working capital — current assets minus current liabilities. How to analyze the cash conversion cycle, accounts receivable turnover, inventory...
Working Capital Management: How Companies Manage Cash Flow and Liquidity
Learn how working capital management works — the cash conversion cycle, accounts receivable, inventory management, accounts payable strategies, and why...
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