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Wednesday, 14 March 2012

Nestle

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Closing price on 14.3.2012 $56.30 How does an investor hope to profit from investing into a high quality growth company? He can obtai...

Warrants trading: What you need to know

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Structured Warrants – Gearing & Greeks In this article we will look at gearing factor and sensitivity coefficients – the Greeks which m...
Tuesday, 13 March 2012

Business Valuation

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Day One Session One:  • The Discounted Cash Flow Model • Setting up the Model Session Two :  • The Big Picture of DCF Valuation • ...
Monday, 12 March 2012

China suffers biggest trade deficit in 20 years

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Rachel Cooper March 12, 2012 - 8:04AM China has recorded its largest trade deficit in more than two decades as Europe's sovereign d...
Sunday, 11 March 2012

Efficient Market Hypothesis: Fact Or Fiction? "Efficient" refers to informational efficiency only.

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The efficient markets hypothesis (EMH) in all of its forms, whether strong, semi-strong, or weak, is normative, not positive, i.e., it is ...

Intrinsic economic valuation versus price bidding in the market.

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There are over 5,000 stocks listed on the major U.S. stock exchanges.  Each common stock is continuously changing and never stays the same. ...

The Relationship of Intrinsic Value to Market Price - tracing the various steps culminating in market price.

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In  Security Analysis  by Graham and Dodd, 1934 edition on page 23: "The Relationship of Intrinsic Value to Market Price .--The general...

Value versus Price - Two Perspectives on Worth

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Value versus Price Two Perspectives on Worth VALUATION PRICING End truth -- intrinsic value illusion -- marginal opinion Means method ...

Margin of Safety

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Intrinsic value is independent of the market and current quoted price.  It is the absolute standard against which all market prices are c...

Warrants trading: What you need to know

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Parameters & Variables of Structured Warrants To figure out the relationship between share price and the associated warrant price, the ...
Saturday, 10 March 2012

Types of Growth and DCF models

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Models of Investment Valuation Declining DDM   Constant DDM                      Slow Growth DDM                   Fast Gr...

Some of the most common types of intrinsic economic valuation model.

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Instead of estimating each cash flow for each time period using a general-purpose DCF model that can be used for any investment asset, we c...

DCF Valuation: The classic work of John Burr Williams

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The valuation model for estimating the investment value of an operating enterprise in the private market, independent of the stock market p...

PE/G ratio

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Some investment strategies seek growth for its own sake or growth for the sake of growth rather than growth for the sake of value.  Wall ...

A rapidly growing company presents special problems in valuation.

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A rapidly growing company presents special problems in valuation. John Burr Williams (1938:560) succinctly writes "They had high hopes...

For practical purposes, it is sometimes sufficient to estimate either the upper bound or the lower bound of the investment value range of a stock.

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The investment value of a stock is conceptually a single point value, the mean of the distribution of investment value. Operationally, in...

The four basic factors needed to appraise the intrinsic value of an operating enterprise and thus its common stock equity

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An important distinction is the difference between reported accounting value (book value or net worth per share) and intrinsic economic val...

Is faith in speculation about future earnings more, or less, reasonable than faith in appraisal of today's value?

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Reliance on the earnings estimates of experts can range from blind faith at one end of the spectrum to reasoned faith at the other end.. ...