Valuation Explained Simply - Cohort 2

Master the art and science of valuing a business.

Brian Feroldi

Author | Financial Educator

Brian Stoffel

Financial Educator

Valuation Explained Simply

Most investors have no clue. That's because they've never learned how to value a business. This 3-week course will teach you the four valuation methods professional investors use to calculate a company's value. From total addressable markets to multiples to discounted cash flow models, understanding these methods will help you make better investing decisions.

What's a business worth?

Investors who want to learn how to value a business and make better decisions.

Entrepreneurs who want to learn how different types of investors think about business valuation.

Executives and aspiring professionals who want to gain fluency in business valuation.

Who is this course for

What you’ll get out of this course

You'll learn how different investors think about valuation and uncover your valuation style.

The Valuation Mindset Spectrum

You'll master the six stages of the business growth cycle, learn to identify which phase a business is currently in, and know which valuation methods work best in each phase.

Understand the Business Growth Cycle

Practice using the big-picture valuation methods favored by venture capitalists, such as total addressable market &amp; serviceable addressable market.

Total Addressable Market

Learn how to calculate common valuation multiples, such as the price-to-earnings ratio, price-to-sales ratio, and price-to-free-cash-flow ratio -- and uncover their limitations.

Stock Multiples

Learn how to use a professional investor's favorite tool: the discounted cash flow model. We'll cover what it is, how to use it, and its drawbacks.

Discounted Cash Flow (DCF Model)

You'll learn how to use a valuation method that flips the DCF model on its head by starting with the stock price and solving for expectations.

Reverse Discounted Cash Flow

You'll understand the most common valuation mistakes that investors make -- and how to avoid them.

Valuation Pitfalls

You'll gain access to the same valuable tools that professional investors use to make multi-million dollar decisions.

Tools of the trade

We'll start by diving into the six phases of the business growth cycle. Mastering this crucial mental model is the foundation of all valuation analysis.

Business Growth Cycle

You'll learn how venture capitalists estimate an early-stage company's value but using total addressable market analysis.

You'll learn how to calculate the most common stock multiples, including price-to-sales ratio, price-to-earnings ratio, and price-to-free cash flow ratio. We'll cover their meaning, how to find them, and their limitations.

Multiples

You'll master using the mother of all valuation tools. We talk about what a DCF model is, how it works, and practice using it on some of today's most well-known businesses.

Discounted Cash Flow

You'll learn how to use valuation method that flips the DCF model on its head by starting with the stock price and solving for expectations.

Valuation is an art and a science. We uncover some of the most common mistakes investors make when evaluating a business -- and how to avoid them.

Avoiding Common Mistakes

Course syllabus

Retired Director of Construction Project Planning and Development

What people are saying

Mon, May 6 - Business Growth CycleWed, May 8 - Total Addressable MarketMon, May 13 - MultiplesWed, May 15 - Discounted Cash FlowMon, May 20 - Reverse DCFWed, May 22 - Common Mistakes

May 6th, 2024

5:00 PM - 6:30 PM BST9:00 AM - 10:30 AM PDT9:30 PM - 10:30 PM IST Each class features 30 minutes of lecture and 60 minutes of case studies, practice, and Q&amp;A. An optional 30-minute of small group discussion follows each class.

Mondays & Wednesdays

Thur, May 9 - 12:00 PM - 1:00 PM EDTThur, May 16 - 12:00 PM - 1:00 PM EDT

Office Hour sessions on Thursdays

Course schedule

If you attend the sessions, actively participate, and still don’t find the course valuable, we’ll happily refund your payment in full. Simply let us know before the end of the 4th class, and we will issue you a speedy refund.

100% Risk-Free

Meet your instructor

Who Should NOT Enroll:

We don't use technical analysis ourselves, so we won't be covering it in this course.

You're interested in technical analysis

Some investors use highly complex academic formulas to calculate valuation. Many of those formulas are far too academic in nature to be useful to investors, so we won't be diving deep into them.

You're looking for complex valuation formulas

This course is designed for beginner and intermediate investors. While we will provide an overview of how DCF models work and practice using them, we'll be focusing on simple inputs. DCF models can get complex, so we won't be diving deep into their complextity.

You want to become an expert in DCF modeling

Valuing options, stock-based compensation, and complex financial derivatives is highly complex and beyond the scope of this course.

You want to value options & derivatives

While we will be looking at company valuations in real-time, we won't be making any stock recommendations.

You're looking for stock recommendations

Frequently Asked Questions

This course builds on live workshops and hands-on projects

Active hands-on learning

You’ll be interacting with other learners through breakout rooms and project teams

Interactive and project-based

Join a community of like-minded people who want to learn and grow alongside you

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About this course

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