How investors look at a company
A plain-English course on reading financial statements and valuing stocks. Every idea is shown on three real companies that could not be more different.
Costco
Thin margins, loyal members, slow and steady growth. Why does the market pay ~45× earnings for a warehouse store?
NVIDIA
Revenue up 65% in a year, 70%+ gross margins. A great example of why trailing P/E can mislead.
GameStop
Shrinking sales, a huge cash pile, and profits that come mostly from interest. A lesson in looking under the hood.
The path
Work through the levels in order. Each lesson takes 10–15 minutes and ends with a quick check.
Foundations
What a share is, the three financial statements, EPS and P/E, market cap vs. EV, GAAP vs. non-GAAP, SEC filings.
Reading the company
How to read a 10-K, earnings season, margins, ROE/ROIC, free cash flow, debt.
Valuation
Picking the right multiple, why industries differ, DCF step by step, moats.
Advanced
Interest rates, stock-based comp and dilution, accounting red flags.
Tools
P/E calculator
Plug in price and earnings. See P/E, earnings yield, and PEG side by side for all three companies.
DCF calculator
Move the sliders for growth and discount rate and watch what a share is "worth" change.