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Showing posts with label WACC. Show all posts
Showing posts with label WACC. Show all posts
Wednesday, 31 May 2017

Valuing companies in Emerging Markets

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Valuation is usually difficult in emerging markets. There are unique risks and obstacles not present in developed markets. Additional c...
Monday, 29 May 2017

Estimating the cost of capital

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The weighted average cost of capital, WACC is the opportunity cost of choosing to invest in the assets generating the free cash flow (FCF) ...
Saturday, 27 May 2017

Conservation of Value and the Role of Risk. Increasing value through reducing the company's risk and its cost of capital.

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Cash flow drives a firm's value creation. Growth and ROIC generate cash flow. Value creation Companies create value: when th...
Friday, 26 May 2017

Fundamental Principles of Firm's Value Creation

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Value creation is determined by cash flows. Cash flows are driven by   revenue growth and  return on invested capital (ROIC). Fo...
Monday, 18 May 2015

Is McDonald's Losing Its Economic Castle?

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Is McDonald's Losing Its Economic Castle? May. 17, 2015 6:35 PM ET    |    7 comments    |    About:   McDo...
Wednesday, 22 October 2014

How to Pick Fundamentally Strong Stocks

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Wednesday, 8 October 2014

You are a lot better estimating the Cost of Capital without using fancy formulas

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Estimate the Cost of Capital  You have to estimate the cost of capital.   First of all, the cost of equity will always be above the cost...
Tuesday, 4 March 2014

How to Value a Company in 3 Easy Steps

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How to Value a Company in 3 Easy Steps - Valuing a Business Valuation Methods Capital Budgeting Valuing a Business How much is a busines...
Thursday, 1 November 2012

Weighted Average Cost of Capital (WACC)

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What It Is: Weighted average cost of capital (WACC)  is the average rate of return a company expects to compensate all its different inv...
Monday, 9 July 2012

How to Value a Company in 3 Easy Steps

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Valuing a Business: How much is a business worth? Don't care about the 'asset value' or 'owner's equity' of t...
Sunday, 24 June 2012

Corporate Finance - Effects of Debt on the Capital Structure

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Using Greater Amounts of Debt Recall that the main benefit of increased debt is the increased benefit from the interest expense as i...
Wednesday, 11 April 2012

Wall Street Prep Lessons: Cash Flow, DCF, WACC, LBO, M&A, Trading and Transactions

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Saturday, 24 April 2010

Shareholder value and Economic Profit

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Shareholders invest in a company to make a profit.  This can come from an increase in the share price and/or the dividends the company pays....
Thursday, 7 January 2010

Looking for the firm with an economic moat (Evaluating Profitability)

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The first thing we need to do is look for hard evidence that a firm has an economic moat by examining its financial results. (Figuring out ...
Saturday, 5 December 2009

What do people mean when they say debt is a relatively cheaper form of finance than equity?

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What do people mean when they say debt is a relatively cheaper form of finance than equity?   --------------------------------------------...
Tuesday, 13 January 2009

Traditional Discount rate or WACC (II)

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Traditional Method: Discount rate or Weighted average cost of capital (WACC) Most generally, the practice is to estimate the returns invest...

Traditional Discount rate or WACC (I)

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Traditional Method: Discount rate or Weighted average cost of capital (WACC) To the risk-free is added an amount reflecting risks associated...