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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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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Mistake #4: Confusing Growth Capex with Maintenance Capex

By Andrew Stotz

The top #4 valuation mistake takes us into a discussion about confusing growth Capex with maintenance Capex. Many analysts miss…

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How to Decide Between the CFA Program vs. an MBA Program

By Andrew Stotz

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

By Andrew Stotz

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?

By Valuation Master Class Student

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

By Andrew Stotz

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

By Andrew Stotz

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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Improve Your CFA Exam Score

By Andrew Stotz

If you were to ask anybody who has ever taken the CFA exam, they would tell you one thing, it…

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#1 of the Top 9 Valuation Mistakes: Overly Optimistic Revenue Forecasts

By Andrew Stotz

During my career, I built highly complex and detailed financial models early on as an analyst, but I later realized…

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