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How to value a company

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By Michael O’Connor, theislandinvestor.com

Every company valuation is simply numbers from today multiplied by a story about tomorrow.

You have financial statements that give you an insight into how the company is performing at a specific moment in time, but it will be the future growth projections from management and market analysts that ultimately determine the price.

Take Tesla, for instance. Revenue and cash flows provided insight into the company’s performance, but it was predictions about future automated driving capabilities, battery production capacity and a world pivoting towards electronic vehicles that drove the company to its trillion-dollar valuation. Today, the revenue and cash flows are better than they have ever been, but the story about tomorrow has faded, and the company is down almost 60%.

While the numbers from today can be quantified, the story is driven by the future growth possibilities of the company. These future growth possibilities can seem rational at any one moment, but as the economy and company performance change, so do the growth possibilities.

Be careful how much weight you put on the stories the market is telling you about specific companies. As the information changes, so too will the story.

To quote Morgan Housel

“We can use historical data to assume a trend will continue, but that’s just a story we want to believe in a world where things change all the time”

Valuation tips

When valuing a company, you need to listen to the story being told by the company’s management team and assess whether this story is economically viable.

Here are three areas to focus on and some questions you should always ask yourself when valuing a company.

Current Cashflows

Is the company generating the profits needed to fund future business? Are the gross and net margins of the company competitive? How stable has the revenue generation been over time? Has the ROE from management been competitive?

Growth Potential

What has the revenue and earnings growth rate been over time? Are there potential revenue streams not currently being accounted for? Does the company have operating leverage that will help drive future profit margins? Does the company have a durable competitive advantage?

Future Risk

Who are the major competitors in the space, and does the company have an established moat to protect its market share? At what point will the company saturate the market, inhibiting future growth? Is the story currently being told by management viable if economic conditions changes?

Stock Picking is Hard

Since the 1940s, the phenomenal return of the S&P 500 has been generated by just 7% of the companies within the index. That is to say, 93% of the companies that made up the index reported flat or negative returns over time.

Remember, while the stock market has historically provided positive returns, picking individual names remains a difficult feat, with the odds very much stacked against you.

For those who get it right, financial elation awaits. But beware, information is constantly changing, so the probability of success can be lower than you think, no matter how strongly you believe in the future story you tell yourself.

If you have any investing questions, scan the QR code above and reach out. Always happy to help.

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St Brendan’s College: Voices from the Halls

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Interview conducted by Aodhagán Ó Súilleabháin, Cormac Flanagan, and Ryan Twomey.

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Name: Kieran O’Leary – Entrepreneur and Killarney businessman.
Year of Graduation: 2005

Occupation: I would be the Jack of all trades and the master of none. I am involved in the hospitality industry. I have Corkery’s Bar, Revive Café, Ruckus Café and I’m a part of Integrity gym, so I do a lot of coaching. The passion by me would be probably in the fitness industry, because I played at a high enough sporting level and that’s come to an end now so I’m kind of concentrating on the coaching early mornings, hospitality day and evening and I have a young family as well so that’s obviously the biggest priority of all.


Could you describe a typical day for you?
I wake up at 5.30 and I am in the Gym for 6am. I work with clients till 8.30 – 9:00am. I then have school drop off, check the stock in the cafes and open Corkery’s. I kind of float around all day, kind of just helping where I can, and then evening time is probably the most hectic, at home, the kids might have football, well the young fella has football, he does a bit of Jiu-Jitsu, and dinner, stop, start, repeat the following day. I work hard, when you’re self-employed it can be difficult, but I try to get down time on Sundays or maybe Wednesdays.

What drew you to St Brendan’s as a school?
It was the sports that kind of drew me. The past pupils that I would have known from the sports clubs and would have seen their careers progress. It’s renowned, the history behind the Sem is unbelievable. I wasn’t really going anywhere else. The history behind it, the stories that come out of it, the people that have progressed and done so well in life. I don’t mean success by wealth, they seem to be happy in their professional life, happy with their life decisions and I suppose the Sem has a huge part playing in that.


Would you have kept in contact with any teachers?
Even now you see older teachers that may be retired or are even still there, they still have a bit of time for you, and they’ll stand in the street and say how are you getting on? We live in a small town, where everyone knows kind of everyone’s business to such an extent, so I think just the camaraderie, friendships and like the great times we had, I’ll always remember that. 



Would you have kept in contact with your classmates?
The friends I made. They are lifelong friends. We were lucky enough to be a part of a good few sporting teams, and we would have progressed through the Kerry GAA side of things, and then there’s a lot of them working around here, a few of them abroad, but you’d have your core five or six fellas that you still stay in contact with. Outside of that if you saw past students of the school around the town, of course you’d stop and talk to them.


Were there any specific academic programmes or teaching methods at the school that helped you succeed in what you’re in today?
I didn’t apply myself the way I’d like to which is kind of a regret, but I did Business Studies with Joanna Ryan, she was a very good teacher. I went on to do business which I didn’t complete in IT Tralee, and funnily enough, then I got involved in the business side of things, so it’s funny how things work out. Just because you mightn’t do the best Leaving Cert doesn’t mean that you’re a failure, there’s always an opportunity around the corner and if you’re willing to apply yourself in any shape, way or form then you’ll succeed. It’s all about the mindset, discipline and as I said, my mindset was GAA, maybe even soccer related when I was that age, I could see nothing else, I was a bit blinkered, but as you broaden your horizons as you get a bit older, more mature you realise there’s different ways to go about your goals.




Can you share an example of how a teacher or staff member made a meaningful impact on your growth.
I’d say Seamus Grealy to be honest, because he is an excellent teacher. He was a soccer coach and he would have seen the potential in me and even though the application mightn’t have been there at times. He still persisted and gave me that chance to try and achieve the best possible grade I could within the Leaving Cert year.  I would have done honours English even though my mother and father were saying “What are you doing?, you know, because I hadn’t the work done or whatever. The fact that he gave me that kind of TLC. I needed, that kind of arm around the shoulder, to say, listen there’s more in you, try your best, and as you know he can be firm as well, I just found him pretty good to deal with. 

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Official launch of the Assess Ireland Rally of the Lakes set for April 11

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The official launch of the 2026 Assess Ireland Rally of the Lakes will take place at Gleneagle Hotel on Saturday, April 11.

The organising team will reveal key details of the upcoming event, including an up-to-date entry list and several new innovations for this year’s rally.

Representatives from three major championships will be in attendance: the NAPA Irish Tarmac Rally Championship, the GK Print Southern 4 Rally Championship, and the Kingdom of Kerry Rally Championship.

Local councillors and politicians will also be present to offer their formal backing to the event, which remains a significant economic driver for the region.

The launch begins at 5:00pm with a display of rally cars outside the hotel. Several local rally drivers will be on hand to meet fans, and an open invitation has been extended to all members of the public and rally enthusiasts to attend

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