Introduction To Asset Valuation

Dicounting Cash Flows to Demterime Net Present Value

What you'll learn

Understanding Asset Fundamentals

Collecting Reliable Information

The Time Value of Money

Discounted Cash Flows

Understanding Risk versus Volatility

Perpetuity Value

Making Your Own Price Estimate

Comparing Investment Opportunities

Compounding

Exponential Functions

Investing Limitations

Requirements

Must be proficient in algebra and the use of exponential functions.

Should be proficeint in excel or similar software for calculation and data vidualization purposes

Minimal understanding of business fundamentals needed

Fundamental Analysis

Description

     In this course, we’ll dive deep into discounted cash flows and perpetuity values, breaking down different investment types into their fundamental components and mathematically determining their present value by reducing their expected returns to account for the time value of money.     This course can help any investor navigate the thousands of investment opportunities available and avoid overpaying for an investment that could result in an unrecoverable loss or under performance over time by thinking about what an asset is worth today.     When the market is overly greedy or overly fearful about the future cash flows of an investment, the market is no longer efficient in its pricing, and creates opportunity for the rational investor.     This course will give you the mathematical tools and mindset you need when evaluating investments for their Net Present Value, but there are a lot more qualitative and intangible factors to consider when determining intrinsic value that will be touched on in this course. Such as the quality of management, poor accounting of earnings, and competitive position, which makes it crucial to incorporate a margin of safety in your estimations.      The equations covered in this course will not only help an investor with stocks and bonds, but any kind of financial endeavor that involves paying money now for cash in the future. Such as home equity, rental properties, investments in machinery, vehicles, technology etc.

Overview

Section 1: Introduction

Lecture 1 Introduction

Section 2: Discounted Cash Flows

Lecture 2 Discounted Cash Flows

Section 3: Perpetuity Value

Lecture 3 Perpetuity Value

Section 4: Stock Evaluation

Lecture 4 Stock Evaluation

Section 5: Intrinsic Value vs Market Price

Lecture 5 Intrinsic Value vs Market Price

Section 6: Test of Understanding

Individual investors looking to gain an understanding of value investing.,People looking to make safe investments in the stock market and outperform an index,People interested in personal finance and stock investing,Finance Students,Investors,Value Investors