Intrinsic Value, Part 1: The Cash a Business Generates
Intrinsic Value, Part 1: The Cash a Business Generates The first post in the Intrinsic Value series. No math yet — just the ideas you need before the numbers make…
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Intrinsic Value
What Is a Stock Actually Worth?
What a stock is actually worth and how to calculate it — step by step, from financial statements to a final number using a Discounted Cash Flow model. The analytical foundation everything else builds on.
Part 1
Part 2
Intrinsic Value, Part 2: Why a Dollar Today Is Worth More Than a Dollar Tomorrow
Intrinsic Value, Part 2: Why a Dollar Today Is Worth More Than a Dollar Tomorrow Before the calculations begin, there's one idea that makes all of them make sense. In…
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Intrinsic Value, Part 3: Two Types of Free Cash Flow
Intrinsic Value, Part 3: Two Types of Free Cash Flow A short but important detour before the calculations begin. In Part 1, we established that the value of a business…
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Intrinsic Value, Part 4: Calculating Free Cash Flow to the Firm
Intrinsic Value, Part 4: Calculating Free Cash Flow to the Firm Time to open the financial statements and start building. In Part 3, we established that for most companies —…
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Intrinsic Value, Part 5: Where the Growth Rate Comes From
Intrinsic Value, Part 5: Where the Growth Rate Comes From We don't guess at growth. We derive it. In Part 4, we calculated Maple Ridge Manufacturing's free cash flow to…
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Intrinsic Value, Part 6: Risk and the Discount Rate
Intrinsic Value, Part 6: Risk and the Discount Rate Future cash flows are worth less than cash in hand. The question is: how much less? The answer depends on risk.…
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Intrinsic Value, Part 7: Putting It All Together
Six parts of groundwork. One payoff. Let's calculate what Maple Ridge Manufacturing is actually worth. Over the last six posts, we built every input a DCF model needs. We defined…
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Intrinsic Value, Part 8: Why Financial Firms Are Different
You've spent seven posts learning one tool. Here's why it doesn't work on banks — and what to use instead. Imagine you've spent the past seven posts learning how to…
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Intrinsic Value, Part 9: When to Sell and Why
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. We've spent eight…
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