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Valuation

Intrinsic value, margin of safety, DCF and multiples: how to estimate what a business is worth and pay less.

A wonderful business bought at the wrong price is a mediocre investment. These guides cover intrinsic value, margin of safety, discounted cash flow and the multiples, so you can estimate what a company is worth and decide what you are willing to pay.

10 articles in this module

What Is Intrinsic Value? The Worth Behind the Price

Intrinsic value is what a business is worth: all the cash it will produce for its owners, discounted to today. Learn why value is a range, not a point.7 min read

Margin of Safety Explained: Buying With a Buffer

The margin of safety is the gap between a company's value and its price. Learn how it protects you from estimation error, with a worked example and common mistakes.7 min read

How to Value a Company: Multiples, DCF and Asset Value

How to value a company comes down to three tools: multiples, discounted cash flow and asset value. See what each assumes, where it breaks, and when it fits.7 min read

Discounted Cash Flow (DCF) Explained: A Worked Example

A discounted cash flow model values a business as the sum of its future cash, discounted to today. Walk through a five-year example and see where DCF breaks.6 min read

Relative Valuation Explained: Picking the Right Multiple

Relative valuation prices a business against peers and its own history using multiples. Learn which multiple fits which business model and the traps to avoid.7 min read

When Is a Stock Undervalued? The Two-Part Test

When is a stock undervalued? When the price sits below a defensible value range and you can name the market's mistake. Learn the two-part test with examples.7 min read

When Is a Great Business Too Expensive?

When is a great business too expensive? When the multiple already prices in years of flawless growth. Learn to keep quality and price as separate judgments.7 min read

Valuation Mistakes Investors Make (and How to Fix Them)

Eight valuation mistakes that quietly wreck good analysis, from point estimates and price anchoring to ignored dilution and DCF theater, each with a fix.7 min read

Growth vs. Value Investing: A False Divide

Growth vs. value investing is a false divide: growth is an input to value, not an opposing style. See where the labels came from and what to ask instead.7 min read

Understanding Market Expectations: Price as a Forecast

Every stock price is a forecast. Understanding market expectations means reading the growth a price implies, then judging whether the business can deliver it.7 min read
Methodology© 2026 Tenet Investing Inc. · Toronto, Canada

Data from Intrinio and Financial Modeling Prep.