Earnings power refers to the business’s ability to generate profits. This course builds on top of the three previous courses on Corporate Valuation, Revenue Model and Cost Structure to develop an integrated understanding of how companies make money and how it impacts valuation. We’ll learn the different earnings metrics, how they drive companies’ stock prices, and how to forecast future earnings. By the end of this course, we’ll be able to use the knowledge we developed to estimate future stock price and gauge the return on our investment.
- Different earnings metrics and margins
- Relationship with valuation and stock price
- How to forecast earnings