The first step to valuing a business is to know which stage of the business growth cycle it’s in. We’ll show you how to figure that out.

Lesson #2 – Valuation Mindset Spectrum

Growth investors and value investors approach valuation from entirely different mindsets. We’ll show you how the investing greats approach valuation and help you determine a method that matches your investing style.

Lesson #3 – Total Addressable Market

We’ll then move on to valuing early-stage businesses by looking at their total addressable market. This is the valuation technique favored by venture capitalists and growth investors.

Lesson #4 – Stock Multiples

Next, multiples are the most common way to value businesses. We’ll cover Price-to-sales, Price-to-Earnings, Price-To-Free Cash Flow, and the pros and cons of each.

Lesson #5 – Discounted Cash Flow

The discounted cash flow model is the most popular valuation method amongst professional investors. We’ll discuss what it is, how it works, and its pitfalls.

Lesson #6 – Reverse Discounted Cash Flow

Next, we’ll talk about a valuation method that flips the traditional discounted cash flow model on its head. The Reverse DCF model is an incredibly useful valuation tool rapidly becoming our favorite valuation method.

Lesson #7 – Avoiding Mistakes

We’ll end the lesson by discussing the biggest valuation mistakes investors make and how to avoid them.