Growth
Growth & Competition
When evaluating the stability of growth periods, a key question is who bears the burden of a particular organization’s growth? What strengths do creditors have and can they […]
Archive
Category: Value: The 4 Cornerstones of Corporate Finance – by McK&Co., T. Koller, R. Dobbs, B. Huyett
Market Efficiency
Expectations Cornerstone
Is it Worth Buying Apple Stock Today? I want to touch on the topic of expectations, or as it’s often called, the “expectations treadmill.” The graphs show historical […]
Market Efficiency
Investor Types & Market Behavior
Participants in the securities market can be divided into two groups: Smart investors conduct in-depth analysis of organizations and determine their intrinsic value, or more precisely, a range […]
ROIC
Stability of ROIC
What determines an organization’s value?Value = (Price – Cost) / Invested Capital Edward Mason’s Structure-Conduct-Performance model (which is based on Michael Porter’s frameworks) suggests that an organization’s created […]
Market Efficiency
Consensus Estimates Don’t Matter
Here’s another interesting nuance I came across in the work of McKinsey & Co. and their co-authors, which I want to share with you: Investment platforms for securities […]
Growth
GDP & Growth
the percentage of total market cap relative to the GNP is “probably the best single measure of where valuations stand at any given moment.” – Warren Buffett Is […]
Risk
Risk & Leverage
How Does Financing Structure Affect Risk? In essence, the financing structure does not impact the value of an organization. Value is created by the assets, and it doesn’t […]