What Is Free Cash Flow to the Firm?

By Andrew Stotz

Free cash flow to the firm (FCFF) is the cash flow that a company is ‘free’ to distribute to all providers of money (both, debt and equity) without damaging its growth opportunities. Below I explain the process an analyst would go through to estimate free cash flow. Like all forecasts, your FCFF starts with your…

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Mistake #8: Choosing an Unreasonable Cost of Equity

By Andrew Stotz

I’ve narrowed down all the mistakes I’ve seen in my career over the last 25 years as an analyst, as…

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9 Steps to Prepping for the CFA Exams

By Andrew Stotz

With August 15th just around the corner, many financially savvy people across the world are psyching themselves up to register…

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Mistake #7: Valuing a Stock Using the Calculated Beta

By Andrew Stotz

Now in the series, let’s move onto one of the most interesting subjects in valuation: beta. Discussing this crucial element…

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Fundamental Vs Technical Analysis for Investing

By Andrew Stotz

Investors use a number of techniques to evaluate stocks before making a trade or long-term investment decision. The two core…

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Time to Celebrate! Valuation Training in Kuala Lumpur

By Andrew Stotz

Today marks the 5th Valuation Master Class Live session held so far! Time to celebrate! So far, we’ve held Live…

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Mistake #6: Underestimating Working Capital Investment

By Andrew Stotz

If you’re jumping in halfway through the series here, be sure to catch up with the beginning Top 9 Valuation…

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The Motivation, Impact, and Pain of Share Buybacks

By Andrew Stotz

What Are Share Buybacks? A share buyback is when a publicly-listed company uses cash to purchase its shares ‘back’ from…

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Mistake #5: Forecasting Drastic Changes in the Cash Conversion Cycle

By Andrew Stotz

Mistake #5, which we’re going to talk about now, is forecasting drastic changes in the cash conversion cycle. First though,…

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3 Effective Methods for Valuing a Business

By Andrew Stotz

Knowing how to value a business accurately is a critical aspect of owning and operating a company that you want…

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