Now, don’t get surprised that among the three stocks, HDFC Bank, despite being the best of wealth creators, gets the lowest valuation on the street.
Yes, stocks from different sectors tend to get different valuations. But there is more to it. The difference is also about at which stage of their cycle that business and that company are.
Here’s an example: A company and sector like Zomato and quick commerce, which are capital guzzlers, would be valued differently as compared to a mature business.
Now, Valuation is a combination of numbers and narratives. But there is only one way to value, and multiple ways to evaluate.
Join ETMarket’s four-day Value and Valuation workshop for a dive into value investing principles and its application in the real world.To join, click here Learning little things can have big consequences; but doing that is no layman’s job.
ETMarkets is bringing in two experienced finance professionals – ex-McKinsey CA Himanshu Jain and ex-Goldman Sachs CA Manoj Goel – for an online workshop on ETMarkets Live.
To join, click here
The four-day Value and Valuation workshop offers a hands-on dive into value investing principles and its application in the real world.
The workshop, which features case studies on notable companies like Tata Motors and Zomato and demonstrates real-world applications, is spread across two weekends: 22-23 February and 1-2 March.
Here are the key takeaways and topics covered in the workshop:
Intrinsic Value Calculation
The workshop emphasizes methods for calculating intrinsic value, a cornerstone of value investing. This calculation takes into account projected earnings, potential growth, and existing market conditions to reveal the true worth of a stock.
Analyzing Financial Statements
Value investors need to understand a company’s financial health thoroughly. Key statements like the income statement, balance sheet, and cash flow statement are reviewed in detail to help investors make informed decisions.
Valuation Techniques
Various valuation techniques are introduced, including discounted cash flow (DCF) and comparable company analysis, to equip attendees with a comprehensive toolkit for evaluating investment opportunities.
Benefits of the Workshop
The workshop not only delves into the technical aspects of value investing but also provides interactive sessions where attendees can clarify doubts and discuss case studies with instructors. Participants receive one year of access to recorded sessions, allowing for continuous review and application of the concepts learned.
Practical Applications
Through case studies of companies like Tata Motors, Zomato and Paytm, participants learn to apply value investing strategies to real-world scenarios, such as evaluating growth potential, risk factors, and economic influences that can impact valuation. These practical insights are invaluable for finance professionals, students, or anyone looking to deepen their investment expertise.
