A DCF valuation (discounted cash flow valuation) estimates what a company is worth today by projecting its future cash flows and discounting them back to present value. It is the most widely used intrinsic valuation method in investment banking, equity research, and corporate finance because it values a business based on its own fundamentals rather…
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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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Growth CapEx vs Maintenance CapEx: What’s the Difference?
Understanding the difference between growth CapEx and maintenance CapEx is essential for accurate company valuation and financial analysis. Confusing these…
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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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Which Valuation Method is the Most Suitable for Different Types of Companies?
Nowadays, we hear more and more that the stock market is overvalued. What does it mean? It means that the intrinsic value of the company is lower than the current stock price.
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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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