MI233: Understanding Stock Prices vs Company Value w/ Brian Feroldi

The Intrinsic Value Podcast - The Investor’s Podcast Network

The Investor's Podcast Network

Business, Education, Investing

4.6 • 592 Ratings

🗓️ 8 November 2022

⏱️ 55 minutes

🔗️ Recording | iTunes | RSS

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Summary

IN THIS EPISODE, YOU’LL LEARN: 02:52 - What is a stock and why do stocks have value? 04:40 - The main factors that increase a company’s value over time. 05:48 - What causes stock prices to move up and down and why this sometimes has nothing to do with company value. 07:51 - How share repurchases and dividends impact a company’s stock price and company value. 11:26 - Why the P/E can look inflated based on the market cycle, accrual accounting choices, a company's equity investments, etc. 14:04 - What factors influence a company’s reported earnings that you may need to adjust for when valuing a company. 21:06 - An overview of GAAP and non-GAAP accounting, what are the differences between the two, and which should investors focus on for valuation analysis. 24:44 - What are the main ways that earnings can be manipulated based on accounting assumptions used? 46:27 - What are some accounting warning signs to look out for that might suggest companies might be cooking their books? 49:54 - What discrepancies to look for in a company’s income statement vs cash flow statements. And much, much more! *Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members. Check out Brian’s book, Why Does the Stock Market Go Up?. Related Episode: You CAN Beat The Market w/ Brian Feroldi - MI082. NEW TO THE SHOW? Check out our Millennial Investing Starter Packs. Browse through all our episodes (complete with transcripts) here. Try Kyle’s favorite tool for picking stock winners and managing our portfolios: TIP Finance. Enjoy exclusive perks from our favorite Apps and Services. Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: Fiscal.AI Connect with Brian: YouTube | Twitter | Blog Connect with Rebecca: Twitter | Instagram HELP US OUT! Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it! Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Transcript

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0:00.0	You're listening to TIP.
0:02.8	Hey guys, I'm really excited to share an upcoming event hosted by the Investors Podcast Network.
0:08.7	Beginning on Monday, October 17th, we're launching a stock pitch competition for you all to
0:13.9	compete in, where the first place prize is $1,000 plus a year-long subscription to our TIP
0:20.3	finance tool. If you are interested in this,
0:23.3	please visit TheInvesterspodcast.com slash stock dash competition for more information.
0:30.5	The last day to submit your stock analysis will be Sunday, November 27th. And to compete,
0:36.2	please make sure you're signed up for our daily newsletter.
0:38.9	We study markets, as that's where we'll announce the winners. And all entries can be submitted
0:44.1	to the email newsletters at theinvestorspodcast.com. Good luck.
0:52.9	If I come across a business where I see their gross margin is steadily declining,
0:58.1	that is a big warning sign for me because that tells me that the company is having to discount
1:03.8	its goods in order to entice buyers to buy them.
1:10.8	On today's episode, I welcome back author, writer, and YouTuber Brian Feraldi.
1:16.4	We cover a range of great topics in this episode. He starts off by talking about why stocks have
1:23.4	value, the main factors that increase the company's value over time, what can cause
1:29.1	stock prices to move up and down, and why this sometimes has nothing to do with company
1:33.7	value.
1:34.5	He also talks about how share repurchases and dividends impact a company's stock price and
1:39.3	company value, what factors can influence the company's reported earnings earnings and can make the PE look inflated.
1:46.3	We also talk about accounting, and he discusses the differences between gap and non-gap accounting,
1:53.0	which should investors focus on for valuation analysis, what are the main ways that earnings
	...

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