Hypothesis Testing for Complete Beginners
Gathering data in itself is meaningless unless we can analyze it and draw powerful insights. What makes data interesting is the ability to evaluate and interpret it. Hypothesis testing refers to a term in statistics where we, as the analysts, evaluate an assumption related to a data set parameter. Based on the purpose of the […]
How to Calculate the Beta of a Company
Beta is a risk-reward measure from fundamental analysis to determine the volatility of an asset compared to the overall market. We consider the market to have a beta of one. Then all assets are ranked based on their deviation from the market. If an asset’s returns fluctuate more than the market, then this asset has […]
Weighted Average Cost of Capital (WACC) Case Study: Amazon (AMZN)
With a reach in e-commerce, cloud computing, digital streaming, and artificial intelligence, Amazon is now one of the largest corporations in the world. Analysts often refer to it as one of the most influential economic forces in the world. Alongside Google, Microsoft, and Apple, Amazon is considered one of the Big Four tech companies. In […]
Understanding the Weighted Average Cost of Capital (WACC)
Introduction The Weighted Average Cost of Capital (WACC) shows a firm’s blended cost of capital across all sources, including both debt and equity. We weigh each type of financing source by its proportion of total capital and then added together. Financial analysts use WACC widely in financial modeling as the discount rate when calculating the […]