Discover the 6-step process to value companies. Unravel the mystery to valuing Google, Microsoft, Amazon, and more.
1. What is a DCF?
Learn why we use the DCF (discounted cash flow) tool to value companies, and why its the best overall tool.
2. Calculating Growth Rates
Discover the "right" way to determine usable growth rates.
3. Calculating NOPAT
Learn the foundations for calculating free cash flow.
4. Reinvestment
Every company MUST reinvest to grow, here we learn the best way to measure those reinvestments.
5. Calculating Free Cash Flow
Start to put all the inputs together to calculate free cash flow, the building block for valuation.
6. WACC and ROIC
Learn how to determine the rates to discount Google's future cash flows back to present value. Huge impact on valuation.
7. Putting It All Together
Put everything together to start valuing companies and find great investments.