How to Value a Stock: A UK Investor's Guide

Most UK investors are better off in a global index fund, but learning to value stocks makes you a sharper investor either way

Start with the business, not the numbers. If you cannot explain how it makes money in two sentences, you cannot value it

Read financials in this order: revenue, margins, free cash flow, balance sheet, share count

Valuation multiples (P/E, PEG, EV/EBITDA) only mean something once you understand the business and its growth profile