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Phil Oakley explains company valuation

Become a better investor with Phil Oakley’s insights into company valuation.
April 3, 2020

What makes a share price move? How do I know if a company’s price to earnings ratio is realistic? What is the free cash flow yield?

Seasoned investment analyst, Phil Oakley has the answers to all these questions and many more. His insights (in the links below) can help you understand company valuation which can help make you a better investor.

Valuation basics

The following articles can teach you general rules of company valuation: which metrics you should use and how to apply them to different types of company.

 

Share prices contain valuable information, here’s how to use it

Trying to predict a company’s future profits and cash flow is a waste of time. “It’s much better to try to work out what a company’s share price is implying about the future”, says Phil. In this article, he explains how.

 

How to value shares

Overpaying for shares is a key risk for long-term investors. Pay too much and you can end up with a very poor investment. Buying a share for less than it is worth can deliver handsome gains. This valuable lesson in the value of shares can help you get the most from your investments.

 

The search for a reliable valuation yardstick

Investors use a variety of measures to weigh up the value of companies and their shares. None of them are perfect, but some are better than others. In this article, Phil takes you through how to use some of the most commonly used measures of valuation.

 

Applying your knowledge

Understanding valuations is one thing, applying them to real-life situations is another. In this series of articles Phil explains how to use common valuation metrics to check whether shares are too expensive to buy or dangerously cheap for a reason.

Quality shares: Too pricey?

Walking a fine line between high quality and high price.

Croda: A quality trap?

Is this dependable company irrationally expensive? 

James Halstead: an expensive chugger?

Quality without growth doesn’t justify a toppy valuation.