How to value a company

How to value a company:

1. Use the current growth rate to estimate the future valuation.

2. Use the current valuation to estimate the future growth rate

3.Compare estimated future growth to actual historic growth.

4.Compare the estimated future valuation to the current valuation.

This is the mental model I use when analysing a company’s quality and valuation.

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In corporate finance there are three rules for maximising value:

1. Buy high return assets

2. Finance assets with low cost debt

3. Only return capital to investors if there are no suitable investments

These principles should guide both how managers run their businesses and how investors find and manage investments. Maximise the highest possible return by investing in the highest returning assets.

https://twitter.com/long_equity/status/1642605465333821442

# US Stocks Opportunities

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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  • smee
    ·2023-04-03
    [Cool] [Cool] [Cool]
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  • JC888
    ·2023-04-03
    Is that sufficient?
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  • alylady
    ·2023-04-04
    Noted! Thanks!
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  • WKB
    ·2023-04-03
    Ok
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  • guohaoer
    ·2023-04-03
    👍🏼
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  • takeshi3879
    ·2023-04-03
    👍
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  • MeowKitty
    ·2023-04-03
    Ok
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  • 虎视Tan
    ·2023-04-03
    👍
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  • DidiWriter
    ·2023-04-03
    😀
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  • Shishir
    ·2023-04-03
    ok
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  • OneC
    ·2023-04-03
    k
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  • LawrenceLBC
    ·2023-04-03
    nice
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  • Geoz88
    ·2023-04-03
    kkah yes
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  • NVJV
    ·2023-04-03
    tow
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  • Jazim
    ·2023-04-03
    ok
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  • [强]
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  • mikelin
    ·2023-04-03
    👍
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  • ProtectorK
    ·2023-04-03
    Gg
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  • LSK9092
    ·2023-04-03
    good
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  • kel0508
    ·2023-04-03
    oh
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