This chapter explores the remarkable growth of a shoe company, analyzing key financial metrics such as operating income, cash flow, and growth rates. It emphasizes the significance of understanding management incentives and potential biases in investment decisions, while introducing the reverse discounted cash flow (DCF) technique for evaluating stock prices.
How do you determine what a company’s worth? You pull a lot of information from a lot of different places.
Jim Gillies joins Ricky Mulvey for a conversation on valuation and mosaic theory. They also discuss:
- How incentives impact valuation
- The “new store growth story” at Costco
- Case studies from a sneaker company and a space company
Companies/Tickers Mentioned: WINA, COST, ONON, SPCE
Host: Ricky Mulvey
Guest: Jim Gillies
Producer: Mary Long
Engineer: Dez Jones
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