9. How to value a company?
We discussed financial statements and financial ratios in the previous videos. By now, you should have a working understanding of how to analyze these statements and draw meaningful insights about the financial health of a company. The next step when you are analyzing a company when making an investment decision is to look at its valuation to get a sense of how it's priced.
Valuing a company is an elaborate process, and we have an entire module for that. But in this video, we'll quickly look at the 3 ways in which you can value a company:
1. Intrinsic valuation
2. Relative valuation
3. Option based valuation
Check out this module to learn how to value a company:
https://zerodha.com/varsity/module/fi...
Leave a comment at the end of the chapters if you have any questions.