The Stock Market is filled with individuals who know the price of everything but the value of nothing.

Philip Fischer

In corporate finance, investments are judged by the power of wealth creation or value augmented. Stock prices reflect the present thoughts of the investors - which can be right, wrong or both. The need is to derive our value and monitor the stock regularly to analyze whether the market is pricing the stock correctly or if there is a gap being ignored. This book is like a Fast Track Program to Learning Business Valuation that gets you on a speeding wheel of this analysis and simplifies Intrinsic Valuation or Business Valuation !

This book was written with the idea of educating/refreshing people on Intrinsic Valuation/Business Valuation or in other words Discounted Cash Flow Valuation. Laying the foundation to understanding the key growth drivers of any given stock i.e. sales growth, operating profit margins, incremental investment rate, income tax, and cost of capital - the book teaches, explains, and elucidates the process of Intrinsic Valuation.

This book is structured into 21 chapters explaining all the value drivers, right from forecast period, sales growth, operating profit margins, incremental investment rate to income tax and cost of capital.

The book is short and simple to understand. It also has a hypothetical illustration - "Black Bay Pizza" in which I run through all the chapters to explain the concept simply.

The book is for...

This book will benefit a large audience with Investment and Corporate Finance responsibilities or aspirants such as:

  • Equity Research analysts or aspiring analysts who are interested in examining alternatives to the multiples that they use
  • Corporate Financial Officers who want to understand details of business valuation, either because they want to acquire or divest businesses or because they are interested in Value-Creating Strategies for their Companies
  • Investment Bankers or Aspirants interested in acquiring a wider repertoire of valuation skills
  • Investors, Money Managers, Portfolio Managers, or aspirants interested in valuation
  • Business School Students or Qualified Personnel such as Chartered Finance Analysts, Certified Public Accountants, Chartered Accountants, etc., who want a strong foundation of the subject

Objective of the Book

After reading this book, the reader should be able to:

  • Develop a Framework for Intrinsic Valuation or refresh concepts
  • Value any company in the world
  • Design Value-Creating strategies