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 #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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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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What to Expect on the CFA Level 3 Exam

By Andrew Stotz

Two exams behind you and one of the final CFA hurdles lies ahead in June 2019. As you’re no doubt…

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Questions to Expect in a Case Competition

By Andrew Stotz

Part 1 of 6: Revenue Questions Over the years, I’ve been a judge in various case competitions from the CFA…

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