Posts by Andrew Stotz
The Motivation, Impact, and Pain of Share Buybacks
What Are Share Buybacks? A share buyback is when a publicly-listed company uses cash to purchase its shares ‘back’ from the market. Also called share repurchase, the concept gives existing shareholders an option of selling their personal stakes back to the company. The only other way a company can distribute cash in such a manner…
Read Full PostMistake #5: Forecasting Drastic Changes in the Cash Conversion Cycle
Mistake #5, which we’re going to talk about now, is forecasting drastic changes in the cash conversion cycle. First though, let’s review the full list of Top 9 Mistakes. Catch up with the other posts here. The Top 9 Valuation Mistakes Overly optimistic revenue forecasts Underestimating expenses causing unrealistic profit forecasts Growing fixed assets slower…
Read Full Post3 Effective Methods for Valuing a Business
Knowing how to value a business accurately is a critical aspect of owning and operating a company that you want to expand and improve. It is an essential skill to have—whether you are thinking about buying a business, selling one, or you want to demonstrate to venture capitalists or lending institutions what the value of…
Read Full PostGrowth CapEx vs Maintenance CapEx: What’s the Difference?
Understanding the difference between growth CapEx and maintenance CapEx is essential for accurate company valuation and financial analysis. Confusing these two types of capital expenditure is one of the most common and costly valuation mistakes analysts make. Growth CapEx expands a company’s productive capacity and drives future revenue. Maintenance CapEx simply keeps existing operations running…
Read Full PostHow to Decide Between the CFA Program vs. an MBA Program
If you are trying to further your professional career, you may have thought about getting an MBA, or even becoming a Chartered Financial Analyst (CFA). While there are advantages and disadvantages for each type of certification, no doubt if you’re considering the choice then the following question has arisen: Will one be significantly better than…
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