Learn how to evaluate a company's true worth using cash flow and valuation metrics. This guide covers valuation ratios, DCF analysis, and earnings quality in plain English.
Valuation shows whether a stock is fairly priced. Cash flow shows whether the company generates real money. Earnings quality shows whether reported earnings are reliable. Together, they reveal the company’s true strength.
Why it matters: overpriced stocks carry more risk, while fairly priced stocks offer better long-term odds.
Future cash flows are worth less today. DCF accounts for this:
💡 A dollar tomorrow is worth less than a dollar today. DCF sums all future cash flows discounted to present value.
Key metrics:
Why it matters: cash pays salaries, debt, and growth — and protects the company in downturns.
Key metrics:
Why it matters: earnings backed by cash are reliable; earnings without cash support may be misleading.
Key signals:
Valuation, cash flow, and earnings quality are essential to understand a company’s true strength. Your tool turns them into clear badges that anyone can grasp in seconds.
Company A (Tech Sector):
Company B (Tech Sector):
→ Company A offers better value with strong fundamentals. Company B is priced for perfection. Check the Financial Health Score for a complete picture.
Valuation measures how expensive or cheap a stock is relative to its fundamentals.
Cash flow shows how much real money a company generates — not just accounting profits.
A DCF estimates the present value of future cash flows to determine fair value.
Yes — low valuation can signal opportunity or trouble. Check the Financial Health Score too.
Earnings include accounting adjustments; cash flow reflects actual money movement. Learn more about data-driven analysis.
See valuation, cash flow, and earnings quality badges in one place.
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