Growth
Value Drivers
Understanding what creates value and how it is created is critically important. A good format to grasp this is through a value creation tree diagram: First, let’s start […]
Archive
Category: [:en]WACC, CoC, Structure[:]
Statement Reorganizations
Pensions & WACC
To assess an organization’s value, we need to accurately measure the beta. Since the beta statistic for an individual organization is not reliable, we perform an industry beta […]
WACC, CoC, Structure
Market Return
An Interesting Approach Used by McKinsey for Calculating Market Expected Returns: Aggregating Current Stock Prices and Expected Fundamentals The fundamental formula for value creation can be expressed solely […]
WACC, CoC, Structure
WACC – Details
The statistically derived beta of an organization is highly volatile, with even one standard deviation often being significant. Therefore, industrial betas or betas from several organizations are taken, […]
DCF Valuation
Long-term Forecast
Simplifying horizon forecasts with formulas also imposes some limitations. Such situations are visible in photos, how forecasts are made under uncertain conditions for ROIC. Assuming ROIC = WACC. […]
DCF Valuation
Competitive Equilibrium
For calculating the value after the horizon, it’s necessary to explain the stability of financial indicators. What does this mean? NOPAT – must be normalized. This is the […]
Growth
#TSR Decomposition
Even good fundamental indicators do not necessarily mean good profitability for investors, as profitability can affect the investment price of shares, which, apart from fundamental data, depends on […]