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Posts by Andrew Stotz

Theory

P/E is an easy to use and commonly used measure of company value, it can be described as what you would pay in price for one in earnings.

Terminal multipliers

We estimate the terminal value of cash flows by valuing the company as a perpetuity using the Gordon Growth model.

Introduction to the model

The excel file consists of 9 sheets which serve different purposes. Sheet FS: This sheet includes the financial data provided