• IFB368: The Role of Stock-Based Compensation in Company Valuation

  • Nov 14 2024
  • Length: 40 mins
  • Podcast

IFB368: The Role of Stock-Based Compensation in Company Valuation

  • Summary

  • Understanding stock valuation is crucial for investors. In this episode of the Investing for Beginners podcast, we explore valuation basics, stock-based compensation, and why Warren Buffett emphasizes buying stocks like he buys socks—when they're on sale. [00:00:50] Introduction to valuation and stock-based compensation concepts. [00:01:11] Buying stocks means owning part of a business. [00:01:33] Valuation determines if a stock's price is fair. [00:02:30] Importance of paying a good price for stocks. [00:03:16] Warren Buffett buys stocks like socks—when they're discounted. [00:03:42] Various methods exist for valuing companies. [00:04:18] Discounted cash flow models project future cash flows. [00:05:17] Free cash flow models analyze cash flow statements. Today's show is sponsored by: Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial. Go to monarchmoney.com/BEGINNERS for an extended 30 day free trial! Sign up for a one-dollar-per-month trial period at shopify.com/beginners. Get 15% off your next gift at UNCOMMONGOODS.COM/INVESTING Get 10 FREE meals at HelloFresh.com/freeinvesting! Get two hundred fifty dollars when you join Ramp. Go to ramp.com/BEGINNERS Cut your wireless bill to 15 bucks a month at mintmobile.com/beginners. Go to SELECTQUOTE.COM/BEGINNERS TODAY to get started. Find great investments at Value Spotlight Have questions? Send them to newsletter@einvestingforbeginners.com Start learning how to value companies here: DCF Demystified Link SUBSCRIBE TO THE SHOW Apple | Spotify | Google | Amazon | Tunein Learn more about your ad choices. Visit megaphone.fm/adchoices
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