1. What is the difference between valuation and financial statement analysis? Do you need to do a full valuation to invest in a firm? What are the pros and cons of full valuation?

2. Describe the valuation process. Why do great investors emphasize understanding the business and industry? What should an investor do if he has trouble understanding the business or industry?

3. Define risk in the valuation framework. Are all risks equal? How do we handle risk?

Please answer the following in your own words. Thank you

4. Teslas cumulative free cash flow is still negative. A friend argues that Tesla has no value. Assess his statement.