Measuring Value
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The guiding principles of value creation are refreshingly simple. But to outsiders, in the flashy world of high finance, where bankers and analysts live in spreadsheets and use confusing and intimidating jargon, the idea of even attempting to learn the science and art of business valuation seems out of reach.
I can hear the finance and investing types snicker.
"What you do must be really hard!" says the outsider.
But the truth is, that the core tenets of value creation can be summarized in a single statement.
Companies that grow (revenues) and earn a return on capital that exceeds their cost of capital create value.
That's it.
This concept was articulated as early as 1890 by Alfred Marshall, and it is both enduring in its validity and elusive in its application.
In this community, I will be posting long-form articles teaching, step by step, the process of valuing businesses.
You will gain a deeper and broader understanding of business and learn valuable and transferable skills.
Welcome!
skool.com/measuring-value-9194
Teaching curious learners about the enduring principles of value creation and its practical applications.
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