Magnimetrics Library
Practical finance, Excel, valuation, and FP&A articles with downloadable working files where relevant.
What is fundamental analysis Previously, we discussed technical analysis to evaluate investment opportunities and spot trends that can help us predict the possible price movements of financial instruments. Fundamental analysis is another tool that investors use to arrive at a number (fair market value) that we can compare to the security’s current price, thus determining […]
The NPS metric is a proprietary analytics instrument developed by Fred Reichheld, one of the owners of the NPS trademark. The theory was first developed in 2001 as an attempt to present a single survey question that is easy to administer to vast numbers of subscribers and easy to track and interpret. The primary objective […]
What is technical analysis? Technical and Fundamental Analysis are the two most common ways of performing research on any trading vehicle (incl. stocks, commodities, currencies, ETFs). Traders use these tools to evaluate investments and spot trends, which indicate good opportunities for trading. Fundamental analysis tries to weigh all the information in a given market (such […]
We all know happy customers come back to do more business with our company. They also provide priceless word-of-mouth marketing by sharing their experience with others. Clients who rate our products and services as highly satisfactory are usually the ones that promote us to their colleagues, friends, and family. This improves both our conversion rates […]
When we are trying to optimize the experience for our customers, there are many metrics we can track and aim to improve. The Customer Lifetime Value (CLV) shows us how much money a customer will bring to the business on average over the entire time they remain a paying client. Whether we decide to refer […]
Customer Churn is one of the most essential metrics for any company with a subscription-based model. It shows the rate at which customers are leaving and switching their subscriptions to someone else. It’s paramount to understand and analyze churn, as even a slight increase in the churn rate can have devastating effects on our business. […]
One of the reasons businesses fail is a wrong estimate of how much it will cost to acquire customers. If the cost ends up too high and exceeds the monetization of the customers, the business cannot operate sustainably. It is essential to understand how much a customer will generate for the business, as knowing this […]
The EBITDA Multiple is the most common method venture capitalists, and financial analysts use to value businesses as investment opportunities. If we plan to acquire a company or sell our own, EBITDA can be a great starting point for measuring the potential value in a sale. When we enter negotiations to sell or purchase a […]
In my current job in Mergers & Acquisitions, I have to prepare many complex folder structures for targets’ data rooms. It’s a tedious but straightforward process that can take up to an hour, as each Request For Information letter is almost the same but contains slight differences. For example, we may need detailed information of […]
More and more companies are offering stock options as part of the compensation package when recruiting new talent. Employee Stock Options are a type of equity compensation that companies can grant to their employees. Instead of giving the stock directly, the company awards derivative options on the stock. These are regular call options that give […]
