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Intermediate

Valuation Methods: DCF, Relative Valuation, and When to Use Each

A practical, India-focused course for investors who can already read financial statements and now want to answer the harder question: what is this stock actually worth? Build a DCF from the ground up for an Indian listed company, from free cash flow and cost of equity using Indian government bond yields, through WACC, terminal value and the bridge to value per share. Then learn relative valuation properly: P/E, PEG, EV/EBITDA, P/B and historical valuation bands on screener.in, and how to pick a peer set that is genuinely comparable. Most importantly, learn which method fits which business, from FMCG and IT services to cyclicals, banks and NBFCs, loss-making new-age listings and holding companies. Finish with reverse DCF, common valuation traps, reconciling methods that disagree, and a full case study on a Nifty 50 company that ends in a buy, hold or avoid decision.

MODULES

6

DURATION

~4.9 hrs

TRACK

Value Investing

Access Level

LEARNER

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Everything included

Full Text Playbooks

Actionable Exercises

Mobile Reading Mode

Lifetime Updates

Curriculum Breakdown

Chapter 1: What Valuation Really Answers

3 Lessons

Price vs Intrinsic Value: What a Valuation Is Actually Telling You10 min read

Absolute vs Relative Valuation: Two Different Questions10 min read

The Three Inputs Behind Every Valuation: Cash Flows, Growth and Risk11 min read

Chapter 2: The Building Blocks of a DCF

4 Lessons

Free Cash Flow to the Firm vs Free Cash Flow to Equity13 min read

Estimating Cost of Equity for Indian Stocks: Risk-Free Rate, Beta and Equity Risk Premium14 min read

WACC Explained with an Indian Listed Company12 min read

Forecasting Revenue, Margins and Reinvestment Without Fooling Yourself14 min read

Chapter 3: Completing and Stress-Testing the DCF

4 Lessons

Terminal Value: Perpetual Growth vs Exit Multiple12 min read

From Enterprise Value to Value per Share11 min read

Sensitivity Tables and Scenario Analysis for Your DCF12 min read

Reverse DCF: What Is the Market Already Pricing In?12 min read

Chapter 4: Relative Valuation Done Properly

4 Lessons

P/E in Depth: Trailing, Forward and the PEG Ratio13 min read

EV/EBITDA and EV/Sales: When Debt and Capital Structure Matter12 min read

Price-to-Book and Dividend Yield: Asset-Heavy and Income Stocks11 min read

Choosing a Peer Set and Reading Historical Valuation Bands on screener.in13 min read

Chapter 5: Matching the Method to the Business

5 Lessons

Valuing Stable Compounders: FMCG and IT Services12 min read

Valuing Cyclicals: Metals, Cement and Autos13 min read

Valuing Banks and NBFCs: Why FCF-Based DCF Breaks and What Works Instead14 min read

Valuing High-Growth and Loss-Making Companies: New-Age Tech Listings13 min read

Sum-of-the-Parts Valuation for Conglomerates and Holding Companies12 min read

Chapter 6: Valuation in Practice

4 Lessons

Common Valuation Traps: Peak Margins, Value Traps and Multiple Mean Reversion12 min read

When DCF and Multiples Disagree: Reconciling Your Valuations11 min read

Case Study: Valuing a Nifty 50 Company with DCF and Relative Valuation15 min read

Margin of Safety: Turning a Valuation into a Buy, Hold or Avoid Decision11 min read