How Can I Value a Company on My Own?

Ever wonder how to find the "true" value of a company on your own? Fool financial analysts Matt Koppenheffer and David Hanson offer some insight.

Feb 13, 2014 at 6:03PM

Ever wonder how to find the fair value of a company for yourself, without relying on Wall Street's numbers?

In this video from Thursday's edition of Where the Money Is, Motley Fool financial analysts Matt Koppenheffer and David Hanson take a question from a Fool reader who asks, "I would like to know exactly how to calculate the true value of a stock, both dividend paying and non-dividend paying. What are the necessary formulas/calculations? Would you be able to give me an example? Are there issues that can not be calculated such as management forces?"

The guys discuss why this is such an enormous question to tackle, what the basic theory behind valuing a company is and what the steps involved are, and where investors can go to find tools that will help them along the way.

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A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

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