Use financial Modeling such as Discounted Cash Flows to determine whether a stock is worth buying

Sharing is Caring!

First watch Aswath Damodaran talk “Valuation: Four Lessons to Take Away“. It is IMHO, one of the best valuation video out there. It will set your expectations straight.

From there, have a look at his courses on Youtube and his blog. He has valuated a couple of companies and made the excel sheets available. I would recommend you download them and try to understand it while learning from his videos. I personally found that the best way to learn valuations is to practice it. It takes time and you will make mistakes, so make reasonable investments. As Aswath said himself, if you were right, it was more likely due to luck than skills.

See also  Dark Winter... Financial Crisis?
See also  Evergrande to Resume Trading TONIGHT with No Guarantee it Will be Able to Meet Its Financial Obligations. Things Might Get Spicy Tonight/Tomorrow


h/t fo30d


Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.