How to Value a Stock (Investing 101 Vol. 1)

Published: April 16, 2020, 5:15 p.m.

In volume 1 of our Investing 101 series, Lead Analysts Matt and Austin discuss some common terms and things they think about when valuing stocks. 

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During this episode we discuss:

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  1. Why we don\u2019t value stocks by the price of the stock
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  3. Why we don\u2019t look for stocks that are down a high percentage from their highs
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  5. How to find and asses Price to Earnings (PE) Ratio (GAAP, Non-GAAP, Forward PE), When/Why you should use GAAP or Non-GAAP numbers
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  7. Example of finding Walmart\u2019s PE ratio
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  9. Price to Sales Ratio (PS) definition and example finding Walmart\u2019s PS ratio.
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  11. Price to Book Ratio (PB)
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  13. Discounted Cash Flow (DCF) and why Matt and I don\u2019t use them much in our investing process.
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Definitions and examples in this episode

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  1. Market Cap
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  3. Price to Earnings Ratio (PE) (GAAP, Non-GAAP, Forward PE), When/Why you should use GAAP or Non-GAAP numbers
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  5. Price to Sales Ratio (PS)
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  7. Price to Book Ratio (PB)
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  9. Discounted Cash Flow (DCF)
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  11. Gross Margin
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  13. Operating Margin
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  15. Dollar-Based Net Expansion Rate (DBNER)
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