Posts by Andrew Stotz

Investment analysis is the process of evaluating financial assets, such as stocks, bonds, and portfolios, to determine their value, risk, and potential return. Professional analysts use it to decide what to buy, hold, or sell, and at what price. Whether you’re building a DCF model, applying the Capital Asset Pricing Model (CAPM), or assessing a…

Financial statement analysis is the process of reading, interpreting, and comparing a company’s financial reports to assess its profitability, liquidity, efficiency, and financial health. It is the foundational skill of equity research, investment banking, credit analysis, and corporate finance because every valuation, model, or investment thesis starts with understanding what the numbers actually say. A…

Financial modeling is the process of building a structured representation of a company’s financial performance, past, present, and projected, to make informed investment, valuation, or business decisions. A financial model translates assumptions about revenue growth, costs, capital investment, and financing into quantified projections of income, cash flow, and balance sheet position. At its core, financial…

Company valuation methods are the analytical frameworks professionals use to estimate what a business is worth. Whether you’re evaluating a stock, pricing an acquisition, or preparing for a finance interview, understanding these methods is essential. There are three main approaches to valuing a company: Income approach: Values a company based on its expected future cash…

A DCF model projects a company’s future cash flows, discounts them to today’s value, and produces an estimate of what the business is intrinsically worth. It is the core analytical tool in DCF valuation, the method used by investment banks, equity research analysts, and corporate finance teams to value companies based on fundamentals rather than…