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Posts tagged as “discounted cash flow”

Shareholder Value Analysis (SVA)

Shareholder Value Analysis (SVA), often associated with the work of Alfred Rappaport, is a sophisticated approach to financial management and strategic decision-making. It is founded on the principle that the primary objective of a company should be to maximize the economic value created for its equity shareholders.

Standard Financial Model

A standard financial model is a spreadsheet-based tool used to forecast a company's financial performance. It's an abstract, numerical representation of a business that helps analysts, investors, and managers make informed decisions.

Relationship Of Intrinsic Value to Market Price

The relationship between intrinsic value to market price is a cornerstone of value investing and fundamental analysis. They represent two different ways of looking at an asset's worth, and the difference between them can present investment opportunities.

3 Different Methods of Equity Valuation

Wise investors know that a company's market price can be influenced by all sorts of things, from market sentiment to temporary news cycles. The real question is: Is the stock's price reflective of its actual worth?

The Capital Asset Pricing Model (CAPM)

The Capital Asset Pricing Model (CAPM), developed in the 1960s by William Sharpe, John Lintner, and Jan Mossin, provides a framework to evaluate the expected return of an investment relative to its risk.

Cost of Capital

Cost of capital is the minimum return a business must earn on its investments to justify the cost of financing and satisfy expectations of both debt holders and equity investors.

Basics of Valuation

Valuation is at the heart of many financial decisions. Whether you're buying or selling a company, assessing the worth of an investment, or determining whether a stock is under or overvalued, knowing how to properly value assets is crucial.

How To Put Your Business For Sale?

Selling a business is a complex process that requires careful planning, preparation, and execution. It's often one of the biggest financial transactions an owner will undertake. Here's a comprehensive guide on how to put your business for sale.

Financial Statement Analysis

It involves a comprehensive examination of a company's financial reports, primarily the Income Statement, Balance Sheet, and Cash Flow Statement, to gain insights into its financial health, performance, and future prospects.