Magnimetrics
  • Home
  • Features
  • About
  • Team
  • Blog
  • Get in Touch
  • Survey
  • Online Courses
    • FREE Intro to Google Data Studio
    • FREE Introduction to Excel
    • Budget Modeling in Excel

investment

Understanding the Gordon Growth Model for Stock Valuation

Understanding the Gordon Growth Model for Stock Valuation The Gordon Growth Model (GGM) is a method for the valuation of stocks. Investors use it to determine the relationship between value and return. The model uses the Net Present Value (NPV) of future dividends to calculate assets’ intrinsic value. It’s the Read more…

By Dobromir Dikov, 3 months3 months ago

How to use the Asset Turnover Ratio

The Asset Turnover Ratio measures how efficiently management uses the company’s assets to generate sales revenue. The ratio compares the amount of net sales to its total assets. It’s a standard efficiency ratio, as it gives investors an idea of how well management runs the company. What is the Asset Read more…

By Dobromir Dikov, 4 months4 months ago

What are Capital Expenditures (CAPEX)?

Capital Expenditures, or CAPEX for short, are cash or credit payments to acquire goods or services that we capitalize in balance sheet assets. From the company’s perspective, we consider those to be an investment. Here we include all expenses that are not shown on the Income Statement and do not Read more…

By Dobromir Dikov, 6 months5 months ago

Introduction to Enterprise Value (EV) of the Business

Once you start delving deeper into valuation and especially in the premise of mergers and acquisitions, you notice that Enterprise Value is an essential term in this field. A company’s value consists of its owned assets, but in reality, obtaining their market value can be tedious and resource-intensive. Following the Read more…

By Dobromir Dikov, 6 months5 months ago

Understand the Market Value of Equity

The Market Value of Equity of the company, also known as Market Capitalization, is the total monetary value of the firm’s equity. We calculate it as the current stock price multiplied by the number of outstanding shares. Therefore the MVE continually changes, as these two values are quite volatile. Analysts Read more…

By Dobromir Dikov, 7 months5 months ago

Consolidation of Financial Statements: A Brief Introduction

In finance terms, consolidation refers to the incorporation of the financial statements of all subsidiaries into the financial statements of the parent company. Consolidation of financial statements requires the parent company to integrate and combine all its financials to create a standard-form income statement, balance sheet, and cash flow statement, Read more…

By Dobromir Dikov, 8 months5 months ago

Sharpe Ratio and Risk-Adjusted Returns

In finance, one of the popular methods to adjust return rates of investments for risk is the Sharpe Ratio. William F. Sharpe developed the ratio in 1966 and revised it in 1994 to arrive at the formula we use today. Originally he called it the ‘reward-to-variability’ ratio. Later on, finance Read more…

By Dobromir Dikov, 9 months5 months ago

Optimal Portfolios and the Efficient Frontier

There’s a widespread assumption in investing that more risk equals increased potential returns. The theory behind the Efficient Frontier and Optimal Portfolios states that there’s an optimal combination of risk and return. The theory relies on the assumption that investors prefer portfolios that generate the most substantial possible return with Read more…

By Dobromir Dikov, 9 months5 months ago

Understanding the Binomial Option Pricing Model

The Binomial Option Pricing Model is a risk-neutral method for valuing path-dependent options (e.g., American options). It is a popular tool for stock options evaluation, and investors use the model to evaluate the right to buy or sell at specific prices over time. Under this model, the current value of Read more…

By Dobromir Dikov, 10 months5 months ago

Opportunity Cost in Financial Modeling and Analysis

Introduction Opportunity cost represents the benefits the business misses out on when picking between alternatives. When we have two desirable options, the benefit from the one not chosen is our opportunity cost. These costs are usually the result of bottlenecks in business processes. Therefore, finance professionals use Opportunity Cost analysis Read more…

By Dobromir Dikov, 11 months5 months ago

Posts navigation

1 2 Next
Privacy & Cookies: This site uses cookies. By continuing to use this website, you agree to their use.
To find out more, including how to control cookies, see here: Cookie Policy

  • Home
  • Features
  • About Magnimetrics
  • Meet the Team
  • Get in Touch
  • Survey
  • Privacy Policy
  • Blog
  • Excel Downloads
Magnimetrics is made in Plovdiv, Bulgaria.
Hestia | Powered by WordPress