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