We only illustrate the techniques and focus especially on the models that disregard the different accounting practices in different countries, so that they can be used to valuate not only the U.S. stocks, but also the stocks in other parts of the world. We will show you the step by step approaches to the stock and assets valuation on spreadsheet Sense . We will also use simple and easy to understand examples in those steps. Junior high math is enough for you to understand the mathematical aspects of the models. Although we strive to make the models easy to understand, we still do not expect any highly intelligent investor to master the models in a day or two.
Investment requires vast patience and a little homework.
For instance, you may plug in appropriate companies' data on the spreadsheet Sense and do the sensitivity tests with different models. Using these approaches, individual investors technically can do just as well as professionals do, and non-technically may even do better. If you are not very comfortable with this formula, do not worry. It will make more sense after you see some examples on the spreadsheet Sense. We price a stock at the present value, the but the future income a stock generates represents future value.