Relative Valuation Using Multiples- is it a reliable methodology to use?
In the dynamic realm of finance, assessing a company’s intrinsic value is as much an art as it is a science. While discounted cash flow (DCF) models and other intrinsic
Bank Valuation – Is Free Cash Flows To Equity (FCFE) the number 1 approach?
A bank valuation exercise is no ordinary task. For example, Deutsche Bank, one of the world’s leading financial institutions, operates within a complex and highly regulated industry, making traditional valuation
Insurance Financial Statements – A complete guide to understand this complex business
INTRODUCTION Financial statements are vital for evaluating the financial health and operational performance of any company. However, the insurance financial statements of companies like Aviva differ significantly not only from
Financing Leases – does the assets belong to you or not?
INTRODUCTION Staying ahead in today’s competitive business environment requires constant innovation and strategic growth. One of the most effective financial tools for achieving these goals are the financing leases. This
Operating Leverage – do high fixed costs create any advantage in business?
INTRODUCTION Operating leverage is a powerful ally and a formidable challenge in the intricate world of business finance. The operating lever can catapult a company’s profits to new heights during
Retained Earnings – Fuelling growth and resilience in modern companies?
Imagine you’re the CEO of a company like Apple or General Electric, standing at the crossroads of a critical decision. You’ve just posted record profits, and now the question looms
Capex VS Opex – is there a huge tradeoff between the two?
INTRODUCTION In the dynamic business landscape, understanding the distinction between Capital Expenditures (Capex) and Operating Expenditures (Opex) is crucial for a company’s financial health. Take Tesla, for instance. The electric
Non-Operating Expenses – can they affect profitability in a big way?
INTRODUCTION When evaluating a company’s financial health, most people zero in on operating income, focusing on how efficiently the core business functions. However, another crucial factor that can significantly sway
Weighted Average Shares Outstanding – how does your EPS get calculated?
INTRODUCTION In the intricate world of financial analysis, one metric stands out as a cornerstone for evaluating corporate performance: weighted average shares outstanding. Imagine a thriving tech giant like Apple
Adjusted EBITDA – does it reflect the true operating performance?
INTRODUCTION EBITDA, which stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, is a powerful financial metric highlighting a company’s operational efficiency by stripping away the effects of financing, accounting,