Introduction

People sometimes get caught up in valuation theory or mechanics and forget a few basic principles – we therefore think it’s useful to state these upfront. Please remind yourselves about these as you go through this course.

Question: What are the 3 golden rules of valuation?

Write them down and then scroll down:

Valuations are not static - they change

Valuation is as much art as science - always use valuation ranges

Use simple models - roughly right rather than precisely wrong.