Posts by Andrew Stotz
Mistake #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 PostMistake #4: Confusing Growth Capex with Maintenance Capex
The top #4 valuation mistake takes us into a discussion about confusing growth Capex with maintenance Capex. Many analysts miss the relationship between Capex, depreciation, and sustainable growth. Which is why we’ll review these aspects within this chapter. First though, a quick recap of the full list of Top 9 Mistakes. The Top 9 Valuation…
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…
Read Full PostMistake #3: Growing Fixed Assets Slower than Revenue
Today, let’s talk about mistake #3: Growing fixed assets slower than revenue. First though, a quick recap of the full list of Top 9 Mistakes. The Top 9 Valuation Mistakes Overly optimistic revenue forecasts Underestimating expenses causing unrealistic profit forecasts Growing fixed assets slower than revenue Confusing growth with maintenance Capex Forecasting drastic changes in…
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