How do you pick stocks,?
Do you evaluate a company’s financial statements? Do you research their management?
Or, do you follow the advice of social investors on Reddit, or pick a company based on a headline you read in the news?
I hate to break it to you…
…but if you aren’t determining the value of a company before investing in it, you’re essentially gambling with your money.
You have no way of ensuring that you will make a great return on your investment!
The flip side is this:
When you use proper valuation methods, you can minimize the risk of investing and maximize the reward.
Before you can determine the value of a company, though, you have to know how to do so.
That’s why I’m sharing The Top 3 Valuation Methods of a Company That You Must Know.
They are:
1. The Margin of Safety
2. The Ten Cap Rate
3. The 8 Year Payback Time
If these sound like a foreign language to you at the moment, you’re in the right place. I’ll teach you what each of these terms means and how you can use it to separate the bad companies from the great ones—the ones that will make you an incredible return on your investment.
These are the valuations I personally always look for in a business before investing in it. And if you watch my new video, you’ll learn why.
When you use all three of these methods, you will be able to understand a company inside and out and be equipped to make smarter investing decisions.
I’d say that’s worth 10 minutes of your time.
Now… go play.
Phil Town
P.S. If you want to know about other important financial metrics to look at when evaluating a company, here’s an entire guide that breaks it down for you.