The Little Book of Valuation: A Practical Review

Discounted cash flow (DCF) valuation estimates an investment's worth by projecting future cash flows and discounting them back to the present.

UK investors can use DCF to assess stocks, ETFs, and private businesses by forecasting dividends and earnings growth.

Relative valuation compares an asset's pricing to similar assets using ratios like P/E, P/S, and EV/EBITDA.

UK investors can use relative valuation to identify undervalued or overvalued stocks within the FTSE 100 or FTSE 250.

Private business valuation involves analyzing business models, market potential, and financial projections.