Online Company Valuation

Terminal Value Explained: Formula, Calculation & Growth Rate

Terminal value is used in financial modelling and valuation analysis to capture the value of a company or business beyond the explicit forecast period, which is typically a few years. In a discounted cash flow (DCF) analysis, the explicit forecast period usually covers a limited number of years, during which financial projections are made based on expected future cash flows.

Reverse DCF : Unveiling Market Expectations through Valuation Analysis

Investors employ various financial models and methodologies to determine the value of a company. One popular approach is the Discounted Cash Flow (DCF) analysis, which estimates a business's intrinsic value based on projected future cash flows.

Understanding Incremental Net Working Capital Investments in Business Valuation

Determining the Incremental Net Working Capital Investment is a crucial step in the business valuation process. It represents the net investment in the Net Working Capital (current assets minus current liabilities).

Intrinsic Value Guide: Calculation, Market Risk & Stocks

Intrinsic value refers to the estimation of a company's worth by projecting its future cash flows indefinitely and then discounting them to their present value using the expected cost of capital.

WACC: Formula, Calculation, Excel and Elements

The Weighted Average Cost of Capital (WACC) or cost of capital is a significant factor influencing valuation. It is determined not only by the business risk but also the financial risk associated with the company's capital structure.

Capital Asset Pricing Model (CAPM) and Theory Explained

The Capital Asset Pricing Model (CAPM) explains the relationship between the systematic risk and the expected return on assets, particularly stocks. This model is used to compute the cost of equity and helps you value risky securities and evaluate expected returns on assets.

Discounted Cash Flow (DCF) Explained With Formula and Examples

Discounted Cash Flows (DCF) is a valuation method used in finance and investment analysis to estimate the intrinsic value of an investment, business, or project. It is based on the principle that the value of money today is worth more than the same amount of money in the future due to factors such as inflation, opportunity costs, and risk.