IFB368: The Role of Stock-Based Compensation in Company Valuation

The Investing for Beginners Podcast - Your Path to Financial Freedom

Andrew Sather & Glassbox Media

Business, Investing

4.2 • 1.5K Ratings

🗓️ 14 November 2024

⏱️ 39 minutes

🔗️ Recording | iTunes | RSS

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Summary

Understanding stock valuation is crucial for investors. In this episode of the Investing for Beginners podcast, we explore valuation basics, stock-based compensation, and why Warren Buffett emphasizes buying stocks like he buys socks—when they're on sale. [00:00:50] Introduction to valuation and stock-based compensation concepts. [00:01:11] Buying stocks means owning part of a business. [00:01:33] Valuation determines if a stock's price is fair. [00:02:30] Importance of paying a good price for stocks. [00:03:16] Warren Buffett buys stocks like socks—when they're discounted. [00:03:42] Various methods exist for valuing companies. [00:04:18] Discounted cash flow models project future cash flows. [00:05:17] Free cash flow models analyze cash flow statements. Today's show is sponsored by: Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial. Go to monarchmoney.com/BEGINNERS for an extended 30 day free trial! Sign up for a one-dollar-per-month trial period at shopify.com/beginners. Get 15% off your next gift at UNCOMMONGOODS.COM/INVESTING Get 10 FREE meals at HelloFresh.com/freeinvesting! Get two hundred fifty dollars when you join Ramp. Go to ramp.com/BEGINNERS Cut your wireless bill to 15 bucks a month at mintmobile.com/beginners. Go to SELECTQUOTE.COM/BEGINNERS TODAY to get started. Find great investments at Value Spotlight Have questions? Send them to [email protected] Start learning how to value companies here: DCF Demystified Link SUBSCRIBE TO THE SHOW Apple | Spotify | Google | Amazon | Tunein Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	I feel like I'm missing out because it seems like everyone is either starting a side hustle
0:05.1	or becoming their own boss. And you know what they're hearing a lot?
0:10.5	That's the sound of another sale on Shopify, the all-in-one commerce platform to start, run or grow your business.
0:18.4	Shopify is the commerce platform revolutionising millions of businesses worldwide.
0:23.3	Whether you're selling books or bracelets or donuts or dresses, Shopify simplifies selling online
0:29.2	and in person so you can successfully grow your business. Covering all your sales channels from a shopfront
0:35.6	ready POS system to its all-in-one e-commerce platform. Shopify
0:40.6	even gets you selling across social media marketplaces like Facebook, Instagram and TikTok.
0:47.2	Full of the industry leading tools ready to ignite your growth, Shopify gives you complete control
0:52.3	over your business and your brand without learning
0:55.5	new skills in design or coding. We all have a moment where we revolutionise our business. My name's
1:02.0	Andrew Gold. I'm a British journalist and I only recently turned my podcast, Heretics, into a
1:07.0	thriving business recently. And Shopify is exactly the kind of thing that takes you from idea
1:12.3	and concept into the land of success and entrepreneurship and a whole lot of kaching.
1:19.1	Remember that sound from the beginning? That's the sign your business is healthy. It's time to
1:23.7	get serious about selling and get Shopify today. This is possibility powered by Shopify.
1:29.6	Sign up for a £1 per month trial period at Shopify.com.uk slash glassbox, all lowercase.
1:37.8	Go to shopify.com.com.com.uk slash glassbox to take your business to the next level today.
1:43.7	Shopify.com.com.
1:45.3	Turning an idea into a small business doesn't happen by accident. You need to be all in.
1:52.3	At constant contact, we have the digital marketing tools you need to get the word out,
1:56.2	close the sale, raise the funds and gather a community around this thing you've built.
	...

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