Advanced valuation and methods
Plain-English guides with worked examples: how to read financial statements, value a business, use technical indicators and manage risk. See the complete Financial knowledge series →
All 142Market basics 15Trading and market structure 15Reading financial statements 15Ratios and business quality 15Valuation 15Advanced valuation and methods 15Technical analysis 15Portfolio, risk and behaviour 15Economy, sectors and the calendar 22
Advanced valuation and methods · 5 min read
Reverse DCF: what growth is the price already assuming?
A reverse DCF starts from today's stock price and solves for the growth it implies, so you can judge whether the market'...
Advanced valuation and methods · 4 min read
Earnings power value: what a business is worth with no growth
Earnings power value capitalizes normalized after-tax operating profit at the cost of capital, giving a no-growth value...
Advanced valuation and methods · 4 min read
Relative valuation with peer multiples
Relative valuation compares a stock's multiples with those of similar companies. Learn how to pick peers and multiples,...
Advanced valuation and methods · 4 min read
Regression-based multiples: what growth, ROIC and margin justify
A regression-based multiple estimates the valuation ratio that a company's growth, returns on capital and margins justif...
Advanced valuation and methods · 5 min read
Why fair value is a range, not a point
Any fair value estimate carries large error. Learn why valuation models disagree, how a margin of safety handles it, and...
Advanced valuation and methods · 4 min read
How the StocksXray X-Ray Score works
The X-Ray Score condenses valuation, growth, profitability, financial health and dividends into one 0-100 number. See th...
Advanced valuation and methods · 4 min read
The five lenses: valuation, growth, profitability, financial health, dividends
A stock can be cheap, growing, profitable, safe or generous with dividends, and rarely all at once. Learn what each of t...
Advanced valuation and methods · 4 min read
Beneish M-Score and spotting earnings manipulation
The Beneish M-Score combines eight accounting ratios to estimate how likely a company is to have manipulated its earning...
Advanced valuation and methods · 5 min read
Cyclical stocks and normalized earnings
Cyclical companies look cheapest at peak profits and priciest at the bottom. Learn why the P/E misleads and how normaliz...
Advanced valuation and methods · 5 min read
Growth vs value investing
Growth investors pay up for fast expansion, value investors look for low prices relative to fundamentals. Compare the tw...
Advanced valuation and methods · 5 min read
Quality investing: buying high-return businesses
Quality investing favors companies with high returns on capital, stable profits and strong balance sheets. Learn what qu...
Advanced valuation and methods · 5 min read
Dividend growth investing: strategy, strengths and traps
Dividend growth investing targets companies that raise payouts year after year. Learn how the strategy works, the math o...
Advanced valuation and methods · 5 min read
The Rule of 40 and software metrics: ARR, churn, net retention
Software companies are judged on recurring revenue, retention and the Rule of 40. Learn how ARR, churn and net revenue r...
Advanced valuation and methods · 5 min read
How to read a 10-K annual report
The 10-K is the most complete public document a US-listed company files each year. Learn its structure, which sections t...
Advanced valuation and methods · 5 min read
10-Q, 8-K and proxy statements: the other SEC filings
Beyond the annual 10-K, the 10-Q, 8-K and proxy statement keep investors current on results, events and governance. Lear...
Educational only, not financial advice.