How to Value a Company: A Complete Guide
The value of a business is equal to the amount of cash you can take out of it for the rest of its life, discounted to the present. Learning how to value a company is just like riding a bike. …
Alpha Models
How to Read Financial Statements Mini-Course
Before you can value a company, you have to understand the numbers. This guide is an attempt to be the resource I wish I had when first starting to read financial statements. This mini-course is not designed to be a …
Micron: Consolidation and Cash Flows
There’s a lot that goes into valuing a company. I’ve valued fast-growing companies in my previous articles. Astute readers may have noticed I discounted the company’s cash flows, but I didn’t explain the method behind the madness. With Micron, I’m …
Floor & Decor: Decorative Disruption
Founded in 2000, Floor & Decor Holdings is a high-growth, differentiated, multi-channel specialty retailer of hard surface flooring and related accessories. According to their website, they offer the industry’s broadest in-stock assortment of tile, wood, laminate, and natural stone flooring along with …
Zendesk: Here Comes The Sun
Zendesk is a fast-growing software-as-a-service (SaaS) business that has made a name for itself with small businesses looking for customer support software. I think the market has high hopes for Zendesk yet has still underestimated its “long-tail” potential. It follows …
Twilio: Flexing its Muscles
Have you ever ordered an Uber, signed up for Netflix, booked a stay at an Airbnb, ordered a pizza on the Dominos mobile app, or received a text message after entering a password to verify it is you? If so, …
