The purpose of this book is to provide the reader with the essential concepts and steps for valuing stocks. This book derives the models mathematically and explains the cash flows and risks associated in order to prohibit an asymmetrical reliance on short term memory. Further, research will be presented in order to improve the comprehension. About the Author: Currently master student (in its second year) at the Stockholm University, participating the programme Banking and Finance. For any questions regarding the book's content or feedback, please contact me by email alexanderhub@hotmail.com