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…
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Fundamental Vs Technical Analysis for Investing
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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Mistake #6: Underestimating Working Capital Investment
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
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
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
Knowing how to value a business accurately is a critical aspect of owning and operating a company that you want…
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How 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…
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Mistake #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…
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One of the Biggest Influences on Your CFA Score: Personality
Becoming a CFA Charterholder is all about the three exams. And the required 48 months of work experience. And the…
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Mistake #2: Underestimating Expenses Causing Unrealistic Profit Forecasts
Welcome to the second installment of my Top 9 Valuation Mistakes blog series. In today’s post, we’ll examine Valuation Mistake…
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