TIP515: The Little Book of Valuation by Aswath Damodaran
We Study Billionaires - The Investor’s Podcast Network
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Understanding Valuation: Cash Flows and Biases
This chapter explores the fundamental principles of valuation in the context of investing, highlighting the essential role of stock exchanges in providing access to future cash flows. It emphasizes the distinction between intrinsic and relative valuation, sheds light on the biases that can affect financial analysts, and illustrates the importance of understanding the time value of money. The chapter also covers accrual accounting and the significance of free cash flow in evaluating a company's long-term growth potential.
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