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Module 4 · Intermediate

Analysing Companies

Balance sheet, income statement, cash flow, ratios and valuation – how to read a company like a professional.

  1. 1Reading the Balance SheetAssets, liabilities and equity – how a balance sheet is built, which items really matter and which warning signs reveal a shaky company.5 min
  2. 2Income Statement and Cash FlowFrom revenue to net income, and from net income to free cash flow – how to read a company's earning power and why profit isn't the same as cash.4 min
  3. 3Valuation RatiosP/E, P/B, P/S, EV/EBITDA, free cash flow yield and PEG – what the key valuation ratios say, how to compare them properly and where they fall short.4 min
  4. 4DCF Valuation: What Is a Company Worth?Time value of money, discounting, discount rate and terminal value – how discounted cash flow analysis works, why it's so sensitive and how to use it sensibly anyway.4 min
  5. 5Quality and Economic MoatsReturn on capital, margins, competitive advantages and capital allocation – how to recognise exceptional businesses and why lasting advantages are so rare.4 min
  6. 6DividendsDividend yield, payout ratio, ex-dividend date and buybacks – how dividends work, why they aren't a free gift and how to spot dividend traps.5 min

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