Intrinsic Value

You’ve learned how to find good companies at a discount. Now let’s talk about what happens when that discount disappears — and what to do about it.

You’ve spent seven posts learning one tool. Here’s why it doesn’t work on banks — and what to use instead.

Six parts of groundwork. One payoff. Let’s calculate what Maple Ridge Manufacturing is actually worth.

Future cash flows are worth less than cash in hand — and the discount rate is the formula for how much less. Here is where that rate comes from and how to set it.

We don’t guess at growth rates — we calculate them from the company’s own historical track record. This post shows exactly how.

Time to open the financial statements. This post shows exactly how to pull the numbers from a real company and calculate its free cash flow to the firm, step by step.

A dollar received today is worth more than a dollar received in five years. This post explains exactly why — and why that fact is the foundation of every valuation.

FCFF and FCFE measure free cash flow in two different ways, and using the wrong one leads to the wrong answer. This post explains the difference and when each applies.

Every business is worth the cash it will generate over its lifetime — nothing more, nothing less. This post establishes the core idea before the math begins.