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 accounting equation, we can value […]

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 mostly use the Market Value […]

Decision Trees in Financial Analysis

Introduction to Decision Trees We use Decision Trees to clarify the expected value of capital investment opportunities. Decision Trees can also be helpful in business operations, where companies continuously struggle with big decisions on product development, operations management, human resources, and others. With Decision Tree analysis, we can better evaluate the alternative options. However, we […]

Capital Asset Pricing Model (CAPM)

Introduction The Capital Asset Pricing Model (CAPM) shows us the relationship between systematic risk for an investment and the expected return on it. Analysts and financial professionals use the model widely for pricing risky investments and generating expected returns for assets, considering the risk and cost of capital. The CAPM goal is to see if […]

Types of Financial Analysis

Today we will take a brief look into the most commonly used types of Financial Analysis. We will see some examples but will not go into detail for each method. This article aims to show you the vast techniques you can apply when doing financial analytics. Hopefully, after reading it, you will be better equipped […]