Value investing · Course 12 of 39 · Valuing a business
Valuation in practice
The price run backwards, earnings through a cycle, growth worth paying for, earnings power, assets, parts, banks, and scenarios instead of one number.
For a reader who can read a multiple and build a discounted cash flow, and wants to use both on real companies: cyclicals, growth, assets, parts, banks and scenarios instead of one number.
After it you can run the price backwards to see what it already assumes, value a business by its assets or its earning power when a forecast is not trustworthy, sum a multi-segment company piece by piece, price a bank on book value rather than cash flow, and read a range of outcomes instead of a single point.
It assumes Valuation and Cost of capital, and draws on the courses before them.
The model, not your inputs
Valuation in practice is 9 lessons on how a valuation is built and which assumption it really turns on. Every input is still yours to supply, this course supplies none of them, and a model with no company in it produces no number you can act on.
See our methodology for how the product reads a filing and what it refuses to compute.