Patrick Badolato

In this engaging conversation, Patrick Badolato, a Professor of Accounting at UT Austin, shares his expertise on company valuation. He sheds light on the importance of P/E ratios while encouraging a broader perspective on financial metrics. The discussion dives into Walmart's tactics for doubling earnings and unpacks Netflix's growth strategies beyond subscriber numbers. With insights into retail challenges and innovative approaches, Patrick provides valuable tips on navigating the complexities of valuing dynamic industries.

Patrick Badolato, an Associate Professor of accounting at The University of Texas at Austin, dives into the complexities of financial statements. He discusses how companies like Walmart, Rent the Runway, and Peloton creatively adjust earnings, impacting shareholder decisions. Patrick highlights the necessity of focusing on operating income and critiques the reliance on GAAP metrics. The risks of non-GAAP manipulations are examined, shedding light on how investors can better interpret true company performance amid evolving analytical technologies.

Patrick Badolato, an Associate Professor of Instruction at the University of Texas at Austin McCombs School of Business, shares his expertise on business valuation. He delves into the drivers of true value versus passing trends, emphasizing the misleading nature of growth rates. The discussion highlights the importance of free cash flow and earnings in assessing profitability, using examples like Peloton and Costco. Badolato also critiques Sweetgreen's automation strategies and explores how AI impacts emerging business models, particularly in education with companies like Chegg.