Thursday, 30 March 2023

Introduction to Fundamental Stock Valuation

  • Released: 2016-08-12 16:55:36
  • Level: Beginner
  • Duration:
  • Price: $ 50 (Free for students of European Bank Contagion Assessment, Forensic Analysis & Valuation)

No certificate is given for this course

This course is FREE for students of the following courses:
European Bank Contagion Assessment, Forensic Analysis & Valuation
Are you a student of any of these courses?
Not a student?

Table of Contents

Intro to Stock Valuation Modeling - Building the Model


This beginner's course came about from a discussion that my teenage son had with me about the profits he made buying Adidas (the German atheltic footwear and apparel company) stock. The stock essentially doubled this calendar year, outperforming many if not all of it's peers. As he told me his story, I noted that Nike was a bigger company with very strong growth metrics, to which he replied Adidas had just signed many promising marketing deals with Kanye West (Yeezy's), etc.,

adidas v nke


The quetion du jour was, "Is Adidas fairly valued, overvalued, or is the market totally missing the boat and the company undervaleud?" Thsi lesson, the accompany valuation model, and the video is the culmination of the discussion that came about from our joint efforts to answer this question.

During this course you will learn the essentials of evaluating a company and their share price. We will go over how to create a spreadsheet that uses a corporation's financial data to determine what a companies share price should be vs what it is. We build a model right in front of you that you can use for the life of owning this lessson. It is viewable online as a Google Sheets document, and downloadable as an Excel file. 

We want ample and interactive student participation with this exercise, and feedback we can continue this exercise into several other companies. We are eyeing the private unicorns, Uber and Lyft as a second exercise, although those will likely be part of a totally separate learning module.

In the mean time, do ask many questions through the instructor's comment wall (this is Reggie Middleton's wall) to get the interactivity started.


Plan Name Price
Unlimited: $ 50




Reggie Middleton

Who is Reggie Middleton?

As per Wikipedia:

Reggie Middleton is an American financial analyst who is the founder and editor of the financial blog, Boom Bust Blog.[1]

Until 2011, he wrote about financial evaluation and the global financial crisis at the 
Huffington Post.[11] According toForbes, Middleton "combines self-promotion with meticulous financial analysis that is often delivered with a whiff of bathroom humor".[12]He regularly appears on CNBC,[2] Bloomberg[3][4][5] and on the Keiser Report[6][7] to discuss his research and opinions, and has also been interviewed on CNN[8] and BBC World News.[9][10]

Eric Sprott, CEO of Sprott Asset Management, a Toronto firm that manages a fund of $5 billion, said of Middleton: “His work is so detailed, so accurate, it's among the best in the world".[13]


Middleton is an alumnus of the Howard University with a bachelor's degree in business management.[14][15]

He now resides in New York City.


After graduation from university, Middleton worked for Prudential Insurance and trained in the sale of financial products. Since then, he was worked in the fields of financial securities and risk management. He was also a significant investor in residential real estate.

Middleton is known for making predictions about the crash of markets and large financial institutions long before they occur. Aaron Elstein of Crain's New York Business said "Mr. Middleton has been startlingly accurate in the past. He forecast the collapse of the housing market in 2007, and in early 2008 warned of the demise of Bear Stearns weeks before it happened. Earlier this year, he said that Ireland's finances were in terrible shape long before Standard & Poor's got around to downgrading that nation's credit rating."[16]



n 2008, he founded Boom Bust Blog, and claims to have over 3000 paying subscribers.[17]

In February 2013, he won CNBC's first-ever stock draft competition, beating out six other traders.[18]

Notable Calls, Investments and Analyses


In 2007, Reggie Middleton predicted the collapse of the US housing market,[19] specifically warning of potential failure in exposed banks such as Bear Stearns, Countrywide and Washington Mutual as well as prominent publicly traded home building companies including DHI, Horton and Lennar.[20] In addition, he delved into the homebuilding industry with a rare specificity in "Lennar, Voodoo Accounting & Other Things of Mystery and Myth!",[21] where he brought to the attention of the public potentially abusive use of off balance vehicles. He called for collapse of the US commercial real estate market in November 2007 [22] and GGP (General Growth Properties, then the second largest commercial mall REIT in the country) in particular,[23] who sported an investment grade rating and $60 per share equity price at the time of Reggie's prediction only to file for bankruptcy less than a year later. Reggie Middleton also actively opined on the collapse of US monoline insurers, whose share prices dropped to single digits from triple digits after Middleton's prognostications [24][25]


Reggie Middleton is well known for being one of the very few to call the collapse of Bear Stearns in January 2008 [26] and the collapse of Lehman Brothers.[27]Widely known as a contrarian investor, he has gone against mainstream sentiment quite often, most notably in his call to short Goldman Sachs [28] and Apple in 2011.[29] He went bearish on the entire US regional banking sector in 2008, naming 32 banks which he felt were at risk [30]


One of his most controversial calls was the impending financial collapse of a large portion of the European Union, which at the time of the initial call was highly contrarian and considered overly bearish.[31] After giving a presentation of his thoughts and analysis as the keynote speaker at ING's Valuation Conference in Amsterdam,[32] no less than six EU nations have sought bailouts due to dire financial straits. Although known primarily for his work in financial, real estate and banking matters, Middleton forecast the impending "mobile computing wars" in which he claimed Apple, Google and Microsoft will battle for supremacy in the cellular handset and tablet market.[33] He accurately called the fall of Research in Motion (RIMM), the maker of the Blackberry, now known simply as Blackberry, while it was trading over $40 per share.[34]

2011 and 2012

Reggie Middleton's most notorious prediction was the collapse of Apple's share price [35] and its loss of significant market share to Google.[36] Apple dropped nearly 40% in price while Google came close to doubling [37]


Middleton has exposed cases of material omissions and misrepresentations in regard to EU bank's financial reporting, particularly as relates to debt, borrowings and encumbrances.[38]


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External links[edit]

Quiz Status
Intro to Stock Valuation Modeling - Building the Model
This course is FREE for students of the following courses:
European Bank Contagion Assessment, Forensic Analysis & Valuation
Are you a student of any of these courses?
Not a student?
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