Valuation Model
Valuation Model
Have you ever relied on P/E ratios or advanced methods you didn’t quite understand for stock valuation, only to lose money on a stock?
We have. That’s why we built this model. It’s simple, quick, and conservative, ensuring you get the most accurate valuation and price target possible.
What you get
- A ready-to-use Excel spreadsheet (Excel license not included; compatible with Google Sheets for free), which gives you a fair value and price target.
- A short 2-page PDF guide and explanation of everything in the model to help you get started immediately.
Specifications
Our model is built upon Equity and Residual Income. What's that:
- Equity: All assets (what the company owns) minus liabilities (what it owes).
- Residual Income: Profit generated beyond your required rate of return.
Why use this approach?
By starting with equity, we account for the net worth already built into the company. By adding residual income, we only give credit for profits that exceed your minimum expectations. This prevents overpaying and ensures your valuation is based on actual economic value. It makes your investing math simple, conservative, and effective.
Returns
We don't offer any returns.
Legal Notice
By using and buying the “Valuation Model” and PDF you accept our legal notice.
The "NVDA" example provided is for informational and educational purposes only and does not constitute financial advice. We assume no liability for any investment decisions you make.