Session 20 (Val Undergrad): Pricing - Descriptional and Analytical Tests

In this session, we continued with our discussion of pricing, starting with the analytics that drive PEG, PBV, EV/EBITDA and revenue multiples. During the session, I played the role of a naive equity research analyst, using sloppy pricing to push buy recommendations on stocks in a number of sectors, based purely on the level of multiples (low PE, low PBV etc.) and asking for pushback. I The bottom line, though, is that most companies that look cheap deserve to be cheap. The key to pricing is finding a mismatch between the pricing and the fundamentals (low PE & high growth, low PBB and high ROE, low EV to Sales and high margins). It is the basis for much of equity research, and takes the form of screens. If you are interested, I have a post that expands on the notion of screening.

[the_kunal_kulkarni]

Really thanks for your work sir, your video are really informative, thanks again sir!!!🔥

[shijupanicker]

Has your opinion on Tesla's fair value changed recently?

[Akerfeldt]

The number of "Ah-HA!" moments I had during this video will keep me going. I'm a little in over my head in terms of lacking finance background, but things are coalescing. I can use this data, rather than just buying a stock based on a low PE and KNOW WHY. That might not seem like a lot but I'm picking up a lot from free youtube videos and a library card...

[sushil]

1.Why Japanese pb ratio is the lowest
2. 33:19