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What a business is worth

Where does a share price come from, and how would you form your own view of a number?

4 steps · Asset classes

The path

  1. Guide

    Reading a set of financial statements

    Before any valuation: the three statements, and what each can and cannot tell you.

  2. Quiz

    Accounting quiz

    Check you can read the statements before discounting anything out of them.

  3. Calculate

    DCF Calculator

    Future cash brought back to today — the one model whose assumptions you can see all of at once.

  4. Quiz

    Valuation quiz

    These questions are about the assumptions, which is where valuations actually go wrong.

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After this one

Borrowing, and what interest really costs

Why is so much of an early EMI interest, and what does paying a loan off sooner actually save?