The Ultimate Guide to Stock Valuation – Sample Chapters


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Written by

Jae Jun

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For the past month, I’ve been working, writing and designing a free ebook for stock valuation to give out to Old School Value members and visitors. It covers all the valuation techniques contained in the OSV Stock Analyzer as well as this blog.

Valuation is important, but it is not black and white.

Before I continue with the article, click the image below to get a mobile-friendly, PDF version of this article.
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It is an art.

Every valuation method requires assumptions and inputs and value investors do not like having to project numbers. I am one of them.

However, it is a necessary evil.

Make realistic assumptions and the inputs are acceptable. Do not use numbers to match what you want the output to be.

Your role as an investor is to be a realist. Not an optimist or a pessimist or to have your views confirmed.

I have people who disagree with the methods I use to value stocks, but that’s because I take a practical and real world approach to valuing stocks. Stocks are valued in all sorts of ways and in the book, you will learn 8 valuation techniques that I use frequently to value stocks.

The most recent example is the post on Friedman Industries. I showed you the NCAV, NNWC, EPV and EBIT multiples which are valuation methods independent of each other.

If you are a current member of old school value and you want to maximize your results, get better results but most importantly save more time by knowing how to really make it work, I provide the details in the book.

For non-members, I believe the book is still relevant to you too. I go through a step by step process of how to use each valuation method, examples and illustrations for you to do it on your own.

Table of Contents of the Book

Valuation Ebook TOC

Valuation Ebook TOC | Click to Enlarge

Sample Chapters – Graham Net Net Stocks and the Graham Formula

Here is a page from the sample chapter. Click the image to enlarge and use one of the links to read the rest. If you are reading from email, come to the website to see it properly.

Valuation Ebook Sample Chapters

Valuation Ebook Sample Chapters | Click to Enlarge

Want it NOW?

If you are interested in getting an advanced copy to provide feedback or a review, leave a comment below.

I’ll send you a copy.

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It is a stock grader, value screener, and valuation tools for the busy investor designed to help you pick stocks 4x faster.

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139 responses to “The Ultimate Guide to Stock Valuation – Sample Chapters”

  1. lkm says:

    hello, long time reader of your blog but have not commented. definitely interested in reading a copy. i’ll provide feedback after reading it. cheers

  2. Sircornflakes says:

    HI there, I like reading this blog, anyway I can get a copy of your ebook please?

    regards

  3. Frank says:

    Definitely interested on reading a copy of your book.

  4. PLV says:

    Hey Jae, I’d also be interested in an advanced copy and would be happy to provide some constructive feedback in return.

  5. CT says:

    Id love a copy

  6. FDP says:

    Interested in receiving the book as well as provide feedback.

  7. Aku says:

    Jae,

    I am very much interested in the advanced copy.

    Thanks

    Aku

  8. Trader says:

    Yes, definitely interested to get a copy and provide feedback.

  9. PaulieWalnuts says:

    Nice idea, Jae. I’d love to take a look at what you’ve written. Thanks.

  10. renzov says:

    Definitely interested to get a copy and provide feedback.

  11. David says:

    Yes, I would love to have a copy for study and comment.

  12. Rich Rockwood says:

    Hello, I would like to give your book a look over 🙂

  13. bill says:

    Good Morning
    Yes I would like a copy
    Bill

  14. Ronak Sheth says:

    Jae, which of these methods you use to make a investment decision and which according to you is the most reliable and result oriented method? I mean collecting data and analyzing them is fun but you cant use different recipes to make same food.

  15. Charles Smith says:

    I’d love a copy Jae. I’ve learned a lot from your site. Thanks.

  16. shivprakash honna says:

    Please send me a copy as well thanks 🙂

  17. JC says:

    thanks, jae. i would be interested in getting a copy.

  18. Al says:

    I am on your email list and I’m interested in a copy.

  19. Yan Aung says:

    Huge, huge fan of your site and current Old School Value Premium subscriber. Love you review your book, Jae. Thanks!

  20. The more the merrier. I’ll send it out once I notice the comments and emails dying down. Don’t want to have to send it out multiple times.

  21. Mike Weaver says:

    Hey send me an advanced copy of your Utimate Guide

  22. Jay Nyarko says:

    Big fan of the site as well. Please send a copy my way!

  23. Seb says:

    Please send me a copy. Om a huge fan of this blog and the old OSV sees. Thanks in advance.

  24. cpo says:

    Please send me a copy. You’ve been sending me your emails for a long time. Fundamental analysis is complex and there are many approaches to valuation. I’m interested in learning more.

  25. Charlie says:

    Would be great to have a copy of this book of yours, I’m eager to read and study whatever Old School Value has to say.

  26. Mike says:

    Would be very much appreciative to receive copy. Just out of college new to investing been receiving emails very intrigued [email protected]

  27. Ray Bonneau says:

    Jae,

    I wouldn’t mind an advanced copy. I’ll write up a post my blog as a review when you are releasing.

  28. John Shariff Cote says:

    I have a finance degree but I learned way more pratical things about investing in your emails and your reading suggestions! I’m impatient to read your ebook.

  29. Kevin Farr says:

    Having access to the US market and instantly being able to look at 10 years looks good to me. I would appreciate a ebook for my review. Thanks in advance and when is the Canadian version coming out???

  30. it’s in the book. You have to use the right tool for the right job. Not a recipe but a cooking tool. You don’t use a knife to stir pots.

  31. Canada is next, but I still have to build up more members to be able to afford it.
    Can’t believe it costs so much to add international indexes.

  32. Ganesh says:

    Jae- I would love to have a copy..will tweet my comments..cheers,

  33. Cons says:

    Hi Jae
    I would really like a copy of your book. Thank you

  34. Cons says:

    Hi Jae
    I would love a copy of your book. I will tweet my comments.
    Thanks

  35. Ob1 says:

    Look forward to the chance to read the book and comment

  36. Darren says:

    Jae,

    Your blog has been a source of great ideas for me. Your articles have a depth is not found in most other blogs and from what I’ve read of the sample your book with be as great as your site.

    I actually had a similar thought to your NNWC idea and I’m curious how you came up with your numbers. A question, why do you choose not to use PPE with a steep discount rate?

    I was thinking of using the 3-6 month low prices (Australia has semi-annual reporting) and using a regression of industry relevant competitors against the balance sheet assets to determine the fire-sale/discounted asset prices.

    Something like this:

    NNWC = Cash + Short Term Investments + b1*Accounts Rec + b2*Inventories + b3*PPE

    with the restriction b1>b2>b3

    Any thoughts? I’d also love to read more from your book

  37. Superfred79 says:

    Can’t get enough of your insight and perspective Jae. As someone who’s just starting out at this stuff I cannot tell you my appreciation. Really looking forward to reading this.

  38. Chris says:

    I’d like to see/review a copy as well, email is [email protected]

  39. Gururaj Rao says:

    As a beginner, I found your articles to be very interesting. I’m having a bit of problems though because I wish to use your spreadsheets to access websites not in the US. I guess with more in-depth studies on all that you have published, I should make progress.Would love to read your e-book.

  40. Charles Dapaah-Siakwan says:

    Hi Jae,

    I would really love to read your ebook and offer comments/review.

    [email protected]

    Thanks
    Charles

  41. Emeka says:

    Jae, Looking forward to reading the Ultimate Guide. Please send me a copy as well.

  42. Cameron says:

    Would love a copy of the ebook, Jae. Thanks!

  43. Rob Urban says:

    Jae, I’d love a copy myself.

  44. Tony says:

    I’d love a copy to review. Email is [email protected]. Thanks!!

  45. Mike Wiitala says:

    I am interested in a copy of your ebook – email to [email protected]

  46. Hey Darren,

    I’ll be returning back to Syd at the end of this year. Time to visit family and friends. Hope to find some time to take a day to meet other Aussie investors.

    I didn’t include PPE because it’s not liquid. The version that I use is actually from Security Analysis. The true old school style but what you are thinking about is perfectly fine as well.

  47. Ren says:

    Hi Jae,

    I’ve been reading your blog for a time now and I think it is very informative. It’s sad that your stock screener is only limited to US markets. I live here in the Philippines and just a beginner in stock.

    I am really interested in this book and I hope you can share it to me as well.

    Here is my email, [email protected].

    Thanks

    Regards,
    Ren

  48. Irving Klein says:

    I am very interested in receiving a copy of your ebook.

  49. Nithi says:

    Please send me one copy, thanks!

  50. vuasu says:

    Hi Jae, please send me a copy too. Thx.
    [email protected]

  51. Carl says:

    Jae,
    Great work, please me a copy, thanks.

    [email protected]

  52. Ken says:

    Very interested in your next chapter, please send me a copy

  53. Melvin Yeo says:

    Hi Jae, great job from you. Please send me a copy too.
    Thanks!

  54. D D says:

    Hi,
    I am very interested in getting an advanced copy too,
    Thanks

  55. Bill says:

    Thank you for being so generous!
    Cheers,
    [email protected]

  56. Hey Jae I would love to review your book, I would also love to write about it on my blog. Thank you!

  57. Jack Wang says:

    Thanks for your good job. I’d like to read your ebook.

  58. Balaji.G says:

    Hi, I am a regular reader of your writings. I would like to know why haven’t you considered piotroski score also.
    Please do send me a copy of the book.

  59. Darren says:

    Thanks for your answer Jae,

    Unfortunately I’d have to respectfully disagree on PPE non-usage, because even though it isn’t liquid, there would still be some value to be found there (even if it was to be sold at 25%), but I guess it could be considered a margin of error.

    I’ll have to have a deeper look into Security Analysis.

    Cheers.

  60. akilligelisim says:

    Hello Jae, I’d like to review the book as well.

    akilligelisim gmail com

  61. Beyo .B says:

    i became interested in value investing from the point, i read the introduction of the intelligent Investor. i noted one thing, in the end the question is what is the value and at how much (price). nice work Jae, please send me a copy

  62. Ricardo says:

    Hello Jae, greetings from a reader. I would also like to appreciate the sample chapters as many others here. You can send to [email protected]
    Thanks!

  63. Justin Lim says:

    Love following your blog and facebook entries. I’d like to learn what you learned about valuation, which I didn’t get from college education. Thank you for being resourceful and giving out valuable information.

  64. Roberto Fischer says:

    Hi Jae, I would very much appreciate an advanced copy. Thanks in advance and keep up the great work!!

  65. alys says:

    I would very much appreciate an advanced copy and will provide feedback. Thanks in advance.

    aly dot somji at gmail dot com

  66. shortboard says:

    Hi jae, please send me a copy.

  67. shortboard says:

    – –

  68. All,
    No need to leave your emails in the comments. I can see your email from the admin section.

  69. Ryan says:

    I would love a copy

  70. Sure. I love it when people disagree. I get less of it these days 🙂
    But that’s what NCAV is mostly for anyways. It includes prepaid expenses and other asset line items not included in NNWC.

    Another thing to consider is that depending on the industry, the PPE may be worth BV or even zero.

  71. Tom says:

    Would like a copy as well. Thanks for sharing.

  72. scg says:

    would love a copy

  73. ronaksheth says:

    Can you send me the advanced copy?

  74. plavi0wnz says:

    Hello, Jae. I would also like a copy of your wonderful book.

  75. Brian says:

    I would love a copy as well. Really appreciate your work.

  76. Sungsta says:

    Thanks Jae for your hard work and dilligience!
    -Sungsta

  77. Salzam says:

    Hi Jae,
    I’m so glad to learn that an e-book will be coming out. I am really looking forward to reading and studying it. Thank you!

  78. Bruce says:

    would be great to have a copy. Thanks in advance.

  79. musing says:

    Pls. mail me a copy.

  80. Jay says:

    Your work is awesome. I would love a copy.

  81. Nyasha says:

    Hi Jae
    Thank you for this, would definitely love a copy.

  82. Tom Di Lello says:

    I’d like a copy too Jae. Thanks!

  83. Mwalcott says:

    Would also love the chance to review a copy.

  84. wellmont says:

    would love to have a copy of your new book sir.

  85. Eugene says:

    Would like a copy. Thanks.

  86. tjameson52 says:

    Would love a copy. Much appreciated.

  87. duncanwil says:

    I admire the way you give so much so freely. good quality discussions and examples too. keep it up!

  88. jimmy says:

    I would like to have a copy too.

    thanks

  89. cdbaby says:

    I LOVE TO HAVE A COPY. THANK YOU

  90. Dougal says:

    Hi Jae, looks really great. Looking forward to a copy please. When finished also looking forward to advising my friends who think I’m mad to be investing in shares to have a read too!

  91. Larry says:

    Please send me a copy too, thanks!

  92. Douglas says:

    Would love a copy! Thanks in advance!

  93. Krisna says:

    Hi Jae,

    Please send me a copy too
    Thank You

  94. Andrew says:

    Please send me a copy. thanks.

  95. Steven says:

    Hi Jae, I would love a copy.

    Thanks

  96. Sam says:

    Can I please get a copy. Thanks.

  97. Mark Mruczek says:

    Hi Jae, I would love a copy to read and review.

    Thanks,
    Mark Mruczek

  98. J Franklin says:

    I would like to have a copy! Thanks!

  99. ohm says:

    Hello Jae
    Please kindly send me a copy.
    your site has been very useful for me
    thanks,
    Ohm

  100. Costantino says:

    I’d like too to receive a copy. Thanks!

  101. Ravi Ramenani says:

    Always fun to read your articles, would love to check the book thanks.

  102. Feng C says:

    Brilliant, thanks Jae. Could I get a copy please ?

  103. Jim says:

    Very good Jae. I would love a copy.

  104. Omar Madrigal says:

    Hello I would love an advance copy. thank you

  105. Phil says:

    Sounds great Jae. I would love a copy

  106. Anthony says:

    Hi Jae great work would be great to have a copy

  107. Keth says:

    Hi Jae, I would like to have a copy.

    Thanks for your sharing,

    Keth

  108. Julian says:

    I would love a copy please Jae.

  109. Anthony says:

    Hi Jae, can I have a copy too? Thank you & great work!

  110. Terry says:

    I would appreciate a copy. Thank you

  111. Dan says:

    I’d like a review copy

    Best

    Dan

  112. Thanks for the interest everyone.
    List is now closed. I’ve got about 120 people which is more than enough at this point for reviews/feedback.

    It will be available for free download anyways, so check back often.

  113. Thanks for the interest everyone.
    List is now closed. I’ve got about 120 people which is more than enough at this point for reviews/feedback.

    It will be available for free download anyways, so check back often.

  114. Sam Rystrom says:

    I would love a copy. Thank you.

  115. Min says:

    I would love a copy too please Jae.

  116. Eric Yap says:

    I would like to have a copy! Thanks!

  117. Advanced copies were closed yesterday. Look out for the announcement to download the official version.

  118. Dave says:

    Great! I would appreciate a review copy.

  119. Gokhan says:

    I would appreciate a copy.

  120. hwhc says:

    Jae,

    I would really appreciate a copy. Thanks for all your hard work on OSV.

  121. Jason says:

    Would really appreciate a copy as well. Thanks!

  122. the advanced copies were sent out. No longer sending it out. Keep an eye out for the official release.

  123. richard gordon says:

    Jae, I’m one of your biggest fans. I come to OSV website frequently to learn more about Value Investing. I use a lot of financial services including Zacks, Morningstar, S&P, the Financial Times and New York Times etc. etc.. I gotta say reading the stuff on your site has really increased my understanding of the business of stocks.

    Anyway, been working slowly through your e-book and have to say its very clear and well written. Cheers.

  124. Thanks Richard. Looking forward to your feedback and hopefully I’ll be able to create more.

  125. John says:

    I have been trying to study valuations for the last year and have found the information on the internet lacking. Your examples appear to be just what I have been looking for. Please-please send a copy ASAP thanks

  126. Kola Ogunleye says:

    I ve watched the intelligent investor video. I need the book now. Please.

  127. Adam Knapp says:

    Thank you for everything you do on your
    website. You provide clear, analytical investment advice in an easily
    digestible format.

  128. It will be released on Mon Aug 12th 2013

  129. Hi John,

    You will be able to download it Mon Aug 12th 2013

  130. Pablo Tiberio Pont Davignon says:

    I would love a copyy

  131. akbar says:

    please send me a copy thanks

  132. Ina says:

    Would really love to have an advance copy. Thanks a lot.

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