Investing Unscripted 144. Do You Even Valuation, Bro?
Jason and Jeff delve into the complexities of stock valuation. They examine valuation metrics such as price-to-sales, price-to-earnings, and price-to-free cash flow, discussing how they can provide critical insights into investment decisions. They also highlight the importance of considering both historical and forward-looking financial data, and how different types of companies, from high-growth startups to mature businesses, require distinct valuation approaches.
04:05 Understanding Valuation: Definitions and Metrics
11:16 Price to Sales: The Empty Calories of Valuation Metrics
16:24 Forward vs. Backward Looking Valuation Metrics
22:41 Avoiding Valuation Traps in Cyclical Industries
26:15 Comparing Competitors: Home Depot vs. Lowe's
27:52 Understanding Valuation Metrics
30:07 Different Types of Companies and Their Valuations
32:53 Turnaround Companies: Challenges and Opportunities
34:41 The Trade Desk: A Case Study in Valuation
41:46 Tesla: The Enigma of Valuation
Companies mentioned: AMZN, CRWD, HD, NUE, LOW, MA, MSFT, S, TSLA, TTD, V, WMT
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