Valuation basics: what is a company worth?

P/E, cash flow, and why 'expensive' is not the same as 'bad'.

Concept

Price is what you pay, value is what you get

Valuation is the discipline of estimating what a business is fundamentally worth, independent of today's stock price. It matters because markets frequently misprice things — sometimes wildly. The P/E ratio, free cash flow, and discounted cash flow (DCF) are three common lenses.

Educational content only — not personalized investment, legal, or tax advice.