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AdvancedStocks

Valuation and Assumptions

Build the growth, margin, and multiple assumptions behind a fair-value range, and learn which inputs actually move the answer.

18 lessons6h 53m4 modules

What the course covers

Module 1The four inputs that decide everything3 lessons · 1h 6m

Strip the spreadsheet back to what actually moves the answer.

  • 1Growth, margin, multiple, discount rateFree preview22m
  • 2Which input your answer depends on24m
  • 3Sensitivity as the real output20m
Module 2Building each assumption honestly5 lessons · 1h 57m

Anchoring on the company's record instead of on hope.

  • 1Revenue growth: what a decade actually looks like26m
  • 2Margins: why they compress23m
  • 3Exit multiples and mean reversion25m
  • 4Choosing your required return21m
  • 5Free cash flow versus earnings22m
Module 3Three scenarios, not one number4 lessons · 1h 24m

Producing a range you can defend and act on.

  • 1Constructing low, mid, and high24m
  • 2Reading a fair-value band18m
  • 3When the price sits inside your range20m
  • 4Expected return versus margin of safety22m
Module 4Reverse valuation6 lessons · 2h 26m

The most useful version of the exercise: what does today's price already assume?

  • 1Solving for the implied growth rate27m
  • 2What has to be true24m
  • 3Case study: a richly-priced compounder29m
  • 4Case study: a cheap business that stayed cheap26m
  • 5Documenting the model you will revisit17m
  • 6Common ways a valuation flatters itself23m

Next in Stocks

Valuation and Assumptions · Everything Money