Courses / Corporate Valuation

Corporate Valuation

23 Lessons | 4 Quizzes

Corporate valuation is the cornerstone of stock investing. It’s the framework that quantifies what the company we’re investing is worth and how the market is pricing it. In other words, what we’re receiving relative to what we’re paying. We’ll learn the different sources of value (i.e. Enterprise Value, Cash & Cash Equivalents, Non-Operating Assets) and the recipients of value (i.e. Debt, Equity Value). With a solid understanding of corporate valuation, we’ll be equipped with a path forward to solve for a stock’s intrinsic value.

Key Takeaways:

  • The concept of corporate valuation
  • Sources and recipients of value
  • How to calculate corporate value

Lessons

1. Case Study Overview

2:54

In this video, we'll go over the case study that we'll utilize to learn how to analyze stocks in the upcoming courses.

2. Introduction to Corporate Valuation

4:54

In this video, we'll learn the concept behind corporate valuation.

3. Enterprise Value vs. Equity Value

3:16

Enterprise Value vs. Equity Value can be confusing. In this video, we'll learn the differences and relationship between the two.

4. Price vs. Value

3:36

In this video, we'll explore the fine distinction between stocks' market price and intrinsic value.

5. Market Capitalization

2:04

Market Capitalization is another term for Equity Value. Now that we understand the concept, it's time to learn the calculations.

6. Shares Outstanding

4:30

To calculate Market Cap, we need to know a company's shares outstanding.

7. Stock Options

5:05

Stock options are a form of dilutive security. In this video, we'll learn how stock options work and where to find the data.

8. Restricted Stock Units (RSU)

3:30

Restricted Stock Units (RSU) are a form of dilutive security. In this video, we'll learn how RSU works and where to find the data.

9. Treasury Stock Method (TSM)

5:42

In this video, we'll learn the Treasury Stock Method that we'll use to calculate stock option's and RSU's dilutive impact.

10. Restricted Stocks

1:16

In this video, we'll learn what restricted stocks are and how it's different from restricted stock units. They're not the same!

11. Stock Option vs. RSU

2:30

Stock option and RSU aren't just different with regards to exercise price. They also differ in terms of effectiveness.

12. Enterprise Value

4:10

In this video, we'll gain a deeper conceptual understanding of Enterprise Value.

13. Debt

4:24

Debt is the money a company borrows and an integral part of corporate valuation.

14. Cash & Cash Equivalents

2:23

Cash & Cash Equivalents refer to the existing cash a company has in hand. It's an important source of value to stock investors.

15. Short-Term Investments

3:13

Short-Term Investments are highly liquid securities that can be converted into cash in a short period of time.

16. Long-Term Investments

3:08

Long-Term Investments are illiquid investments but they can still be a source of value.

17. How Equity and Enterprise Values Change

4:09

Let's learn how Equity Value and Enterprise Value change based on different events, such as stock price fluctuations.

18. Can Valuations Be Negative?

3:13

In this video, we'll investigate whether valuation metrics, such as Equity Value and Enterprise Value, can be negative and why.

19. Valuation Multiples

4:15

Valuation multiples put stocks' valuation in perspective relative to their earnings.

20. Timing of Multiples

3:12

For the stock analysis to be meaningful, we have to be considerate of the timing of multiples.

21. Consensus Multiples

3:37

In this video, we'll learn how to use market consensus to calculate the consensus multiple for a stock.

22. Third Party Market Pricing Data

4:25

While we can use third party websites for market data such as stock price performance, we should calculate our own valuation and multiples.

23. Connecting Dots

3:04

It's time to connect dots with what we've covered in this course about Corporate Valuation and what we'll learn in the upcoming courses.