Resources on determining what stocks and companies are truly worth. Browse guides on PE, PB, DCF, EV/EBITDA, intrinsic value, market cap, dividend models, WACC, CAPM, and various valuation frameworks.
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14 mins
Difference Between Basic EPS and Diluted EPS
Basic EPS shows current earnings per share, while diluted EPS accounts for potential dilution. Comparing both helps investors assess true profitability and understand how future share issuance may impact returns.
Fundamental Analysis
Financial Ratios
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14 mins
Stock Valuation Methods
Stock valuation methods help estimate a company's intrinsic value using fundamentals and comparisons, enabling investors to identify undervalued opportunities and make more informed, disciplined investment decisions.
Fundamental Analysis
Valuation
13 mins
Enterprise Value vs Equity Value: What an Investor Should Know
Enterprise value reflects the total business value, while equity value represents shareholders' ownership. Understanding both helps investors evaluate companies more accurately, especially when debt and cash levels differ.
Fundamental Analysis
Valuation
Cost of Capital
The cost of capital is the minimum rate of return a company must earn on its investments to satisfy its investors and lenders.
Fundamental Analysis
Valuation
Discounted Cash Flow (DCF)
Discounted Cash Flow (DCF) is a valuation method used to estimate the value of a business based on its expected future cash flows, which are adjusted (or "discounted") to their present value using a discount rate.
Fundamental Analysis
Valuation
Market Capitalisation
Market capitalisation, or market cap, is a simple yet powerful measure of a company’s total value in the stock market. It is calculated by multiplying a company’s outstanding shares by its current share price. In mergers and acquisitions, market cap plays a key role in assessing whether a target company offers fair value to the acquirer.
Fundamental Analysis
Valuation
Weighted Average Cost of Capital (WACC)
WACC, which stands for Weighted Average Cost of Capital, is a financial metric used to measure a company's financing cost from all sources, such as debt, equity, and other capital. It represents the average rate of return that a company must earn for both debt holders and equity holders to finance its assets.
Fundamental Analysis
Valuation