Intrinsic Valuation Course

My online guide to intrinsic valuation.

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You will be able to value companies like Tesla, Amazon, Microsoft, Walmart, & JP Morgan Chase & Co.

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You will learn every step of the intrinsic valuation process and be able to:

• Determine the intrinsic value of any financial asset.
• Identify undervalued stocks and invest with conviction.
• Make better risk-adjusted investment decisions.
• Understand what drives the intrinsic value of any company.
• Deeply appreciate the link between time, risk and capital costs.
• Recognise how to develop a true margin of safety.

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Course Curriculum:

Topic 1 - Introduction

• The intuition behind intrinsic valuation.
• The definition of intrinsic valuation.
• Intrinsic valuation myths.
• Methodology overview.
• Pillars of intrinsic valuation.

Topic 2 - Foundations

• Time value of money.
• Risky vs risk-free cash flows.
• The laws of intrinsic valuation.
• Debt vs equity.
• Different approaches, same result.

• The intuition behind the risk-free rate.
• Risk-free rate definition.
• Risk-free rate estimation.

Topic 4 - Equity Risk Premiums

• What is the equity risk premium?
• Backwards-looking ERP.
• Forward-looking ERP.
• Market risk.
• From market risk to corporate risk.

Topic 5 - Relative Riskiness

• The intuition behind relative risk measures.
• The CAPM.
• Issues with the CAPM.
• Deconstructing equity, asset and product betas.
• The cost of equity.

Topic 6 - The Cost of Capital

• What classifies debt for valuation?
• Estimating the cost of debt.
• Estimating the WACC.
• Things to remember.

Topic 7 - Free Cash Flows

• What are free cash flows?
• Calculating FCF.
• Continuing our examples.

Topic 8 - Growth

• The reinvestment link.
• Fundamental growth rate.
• FCF and growth normalization.
• Top-down forecasting.
• Corporate life-cycles.
  

Topic 9 - Stable Value

• The perpetuity assumption.
• The stable growth model.
• The laws of stable growth.

Topic 10 - Final Adjustments

• The going-concern assumption & distress.
• Investments & other non-operational assets.
• Unfunded claims, pensions & litigation.
• Employee options.

Topic 11 - Sensitivity Analysis

• Putting it all together.
• Bull, base & bear cases.

• Review & overview of the different approaches.
• Final tips & parting words.

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What's included

• I've divided this course into 12 Topics with 400+ slides in total to develop your intuitive understanding of all the steps and concepts. 

• 8x spreadsheet models to demonstrate every stage of the valuation process.

• I've compiled data over the last 5 years to estimate relative risk measures for every industry.
  
  

• Loaded with diagrams and graphs to visualise key concepts and instil an intuitive understanding of models.

• Detailed examples from real companies using current data. Follow a valuation of Unilever, Wells Fargo and Forterra from start to finish.
  
  

• Deeply understand core concepts and appreciate how the many moving parts of valuation fit together.

You can intrinsically value any company!

Empower yourself and invest with conviction.

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Who Am I?

Value investor. Family office. A decade in hedge funds, mutual funds, and VC. B.Comm/B.Sci (Adv. Math) USyd. 🦘 in 🇬🇧

See my stock valuations and research here.