Learn Financial Valuation

Master DCF modeling, comparable company analysis, and professional valuation techniques

Platform Walkthroughs: See IntrinsiclyIQ in Action

Learn by example! These step-by-step walkthroughs show you exactly how to use IntrinsiclyIQ's unique features to value real companies. Unlike generic tutorials, these guides demonstrate our actual platform with real data, live calculations, and Wall Street accuracy comparisons.

Apple (AAPL)
Beginner

Complete platform introduction using the world's most valuable company. Learn how IntrinsiclyIQ loads 10+ years of data, calculates dynamic WACC (8.2%), and compares your results to 42 Wall Street analysts.

  • Automatic historical analysis
  • Step-by-step assumption building
  • 5-year cash flow projections
  • 98.6% accuracy vs. analysts
Start Apple Walkthrough
Tesla (TSLA)
Advanced

Master high-growth company valuation with 25% revenue growth, margin expansion scenarios, and terminal value sensitivity. See why Tesla's 11.2% WACC (vs. Apple's 8.2%) matters.

  • Aggressive growth modeling
  • Scenario analysis (15%-35% growth)
  • Heavy CapEx considerations
  • Terminal value sensitivity
Start Tesla Walkthrough
Micron (MU)
Case Study

Real proof of platform accuracy. See exactly how we achieved 99.3% correlation with Wall Street consensus by using dynamic WACC (8.60% vs. arbitrary 12%), proper FCF formulas, and accurate debt calculations.

  • 99.3% vs. 32 Wall Street analysts
  • WACC methodology breakdown
  • Depreciation add-back importance
  • Before/after comparison
View Accuracy Case Study
What Makes These Walkthroughs Different: Instead of generic finance theory, you see our actual platform calculating real valuations with live market data. Every number, formula, and result comes from IntrinsiclyIQ - not Excel spreadsheets or hypothetical examples.

Core Valuation Methodologies

Discounted Cash Flow (DCF) Analysis

Learn how to build professional DCF models using the same methodologies taught at top business schools and used by Wall Street analysts.

  • Free cash flow projections
  • WACC calculation with CAPM
  • Terminal value modeling
  • Sensitivity analysis
Learn DCF Modeling

Comparable Company Analysis (Comps)

Master relative valuation using trading multiples from peer companies. Learn how investment bankers value companies using market comparables.

  • Peer company selection
  • Multiple calculations (P/E, EV/EBITDA)
  • Statistical analysis
  • Industry benchmarking
Learn Comps Analysis

Key Valuation Concepts

WACC & Discount Rates

Understand how to calculate Weighted Average Cost of Capital using CAPM. Learn about cost of equity, cost of debt, and capital structure optimization.

Key Topics: Risk-free rate, beta, equity risk premium, after-tax cost of debt

Read full tutorial

Free Cash Flow

Master the calculation of unlevered free cash flow (UFCF) for DCF models. Understand NOPAT, depreciation, CapEx, and working capital changes.

Key Topics: Operating cash flow, capital expenditures, working capital management

Read full tutorial

Terminal Value

Learn how to calculate terminal value using perpetuity growth method. Understand why terminal value typically represents 60-80% of enterprise value.

Key Topics: Perpetuity growth rate, exit multiples, long-term growth assumptions

Read full tutorial

Valuation Multiples

Understand trading multiples like P/E, EV/EBITDA, and Price/Sales. Learn when to use each multiple and how to interpret them correctly.

Key Topics: Equity vs enterprise value multiples, LTM vs forward multiples

Read full tutorial

Enterprise vs Equity Value

Learn the critical difference between enterprise value and equity value. Understand how to bridge from EV to equity value per share.

Key Topics: Net debt calculation, minority interests, preferred stock

Read full tutorial

Growth Rate Analysis

Master revenue and earnings growth projections. Learn to analyze historical trends, industry dynamics, and competitive positioning.

Key Topics: Historical averages, management guidance, industry growth rates

Read full tutorial

Financial Statement Analysis

Understanding financial statements is essential for accurate valuation. Learn how to extract the key metrics needed for DCF and Comps models.

Income Statement
  • Revenue recognition and quality
  • Operating income (EBIT) calculation
  • EBITDA and adjusted EBITDA
  • Effective tax rate analysis
  • Earnings quality assessment
Balance Sheet
  • Asset quality and composition
  • Debt structure and maturity
  • Working capital management
  • Cash and equivalents analysis
  • Off-balance sheet items
Cash Flow Statement
  • Operating cash flow quality
  • Capital expenditure trends
  • Free cash flow calculation
  • Cash conversion rates
  • Dividend and buyback policies

Industry-Specific Valuation

Different industries require different valuation approaches. Learn the key metrics and considerations for major sectors.

Technology

High growth, R&D intensity, platform effects, network economics

Retail

Inventory turnover, same-store sales, e-commerce penetration

Healthcare

Drug pipelines, patent expirations, regulatory approval risks

Energy

Commodity price sensitivity, reserve life, production costs

Financials

ROE analysis, loan quality, capital ratios, interest rate sensitivity

Industrials

Cyclicality, order backlogs, capacity utilization, margin trends

Real Estate

FFO, NOI, cap rates, occupancy rates, lease terms

Consumer

Brand value, customer acquisition costs, lifetime value, loyalty

Common Valuation Mistakes to Avoid

Overly Aggressive Growth Assumptions

Assuming 20%+ growth rates for mature companies or projecting growth that exceeds industry trends. Always validate assumptions against historical data and competitive dynamics.

Ignoring Cyclicality

Using peak earnings for cyclical companies instead of normalized or through-cycle metrics. This leads to overvaluation at cycle tops and undervaluation at troughs.

Wrong Discount Rate

Using arbitrary discount rates (like 10% or 12%) instead of calculating company-specific WACC. This introduces significant valuation errors and destroys model credibility.

Inappropriate Peer Selection

Comparing companies across different industries or with vastly different business models. Comps analysis requires truly comparable companies with similar growth, margins, and risk profiles.

Forgetting Working Capital

Omitting working capital changes from free cash flow calculations. Growth companies often require significant working capital investment that reduces cash available to investors.

Excessive Terminal Value

Using terminal growth rates above GDP growth or having terminal value represent 90%+ of total value. This indicates unrealistic long-term assumptions requiring recalibration.

Valuation Best Practices

Professional Approach
  • Use multiple valuation methods (DCF + Comps + precedents)
  • Build scenarios (base, bull, bear) to capture uncertainty
  • Validate assumptions against historical data
  • Compare results to analyst consensus
  • Document all assumptions and sources
  • Update models as new information emerges
Quality Checks
  • Sanity check implied multiples from DCF
  • Verify data sources and calculation formulas
  • Stress test key assumptions with sensitivity analysis
  • Compare margins and returns to industry averages
  • Review for internal consistency (revenue vs FCF)
  • Get second opinions on critical assumptions

Additional Learning Resources

Recommended Reading
  • Valuation: Measuring and Managing the Value of Companies - McKinsey (Koller, Goedhart, Wessels)
  • Investment Valuation - Aswath Damodaran
  • Security Analysis - Benjamin Graham & David Dodd
  • The Little Book of Valuation - Aswath Damodaran
  • Equity Asset Valuation - CFA Institute
Online Resources
  • Professor Damodaran's Website - Free valuation data, spreadsheets, and papers
  • SEC EDGAR - Official company filings and financial statements
  • Company Investor Relations - Management presentations and earnings calls
  • CFA Institute - Professional certification and education materials
  • IntrinsiclyIQ Platform - Practice with real companies and live data

Ready to Build Your First DCF Model?

Apply what you've learned by analyzing real companies with professional-grade tools and live financial data.

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