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What are the basics of value investing?

The Dividend Experiment

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What are the basics of value investing in your opinion?

For context, I am planning to revamp The Dividend Academy and want to add a course section on the basics of value investing. if you consider yourself intermediate of higher level at value investing what kind of things did you feel you needed to learn at first?

I'm thinking things like ratios and general principles but would love to hear your ideas to
 
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Weasel

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the woods
What are the basics of value investing in your opinion?

For context, I am planning to revamp The Dividend Academy and want to add a course section on the basics of value investing. if you consider yourself intermediate of higher level at value investing what kind of things did you feel you needed to learn at first?

I'm thinking things like ratios and general principles but would love to hear your ideas to
As a staring point I'll choose an industry or sector that I'm interested in or see developing.

Then I'll want to look at the Enterprise Multiple aka EV/EBITDA (link). I'm not going to try and explain the ins and outs, but it helps to account for debt when comparing different stocks.

You can use a stock screener to help filter and build a list of those to take forward for further research.
 

Metropolitania

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Price to earning ratio (PE ratio) and price to book value ratio (PB ratio) can be incorporated along with value investing stock screener. Importance of intrinsic value can be included rather than believing in efficient market hypothesis.
 

YoungWill

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If your are looking at investment for long time, value investing is the best option. In words of Peter Lynch "There is a company behind the stock name you are planning to buy, see what that company does if you like that then invest in the company". Some people see P/E ratio and other factors, these are all good but could be manipulated. Find out how the company operates and provide services to the customers, if you like their business style then invest in them. For Example, Amazon is a great company to invest. They have solid business model, they provide excellent service to their customers and it enjoys huge customer royalty. Invest in good companies which provide good value to the people and society. These stocks would surely appreciate in the long run.
 
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