Business Valuation: DCF & Rule 40

If you missed the best recent articles:

• What Does China Have in the Trade War with Trump?

• US Vs The World – Why Does Trump Want War?

• SoFi Technologies: The Star of the US Fintech Scene

• The Trade Desk - What Does It Really Do?

• 5 Historical Asset Bubbles & Lessons for Investors

• HIMS: Has the Telehealth Fever Cooled Down?

• Grab – The Super App Dominating Southeast Asia

"Valuation is not a science or an art, it is a training process: wrong and correct mistakes." – Aswath Damodaran

In the first part of the series Business Valuation, Viet Hustler has taken you through the most fundamental principles: from viewing valuation not just as a financial problem, but as a practical skill requiring understanding of the business, industry, to a practical approach through the Apple case study.

But understanding the business model is only half the journey. The other half is the numbers, the cash flows, the financial picture that needs to be "discounted to the present". And that's where the DCF (Discounted Cash Flow) method - Discounted Cash Flow - enters the game.

DCF may be dry, may be complex. But if approached correctly, it is a powerful tool to determine the intrinsic value of any business.

In addition, Viet Hustler will also introduce an extremely useful concept for high-growth companies in the technology sector: Rule 40. A simple rule, but it helps investors see the balance between growth and profitability – something not always clearly shown on financial statements.

Content of today's article:

1. Basic Valuation Toolkit: 4 Formulas Investors Need to Remember

2. The Story Behind the Numbers & Valuation Application

3. Rule 40 and Practical Applications

4. Notes When Performing Valuation