Risk
Precision formulas for β
One reason for using comparable companies’ data to derive the beta of a listed company is that it yields a more accurate beta. Is it worth the effort? […]
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Reader level: Advanced
Risk
4 Versions of Un-Levering Formulas
When valuing an organization, it’s easy to make mistakes if you approach the calculation of Cost of Equity and WACC superficially — because intrinsic value is highly sensitive […]
DCF Valuation
FCF Growth
In business valuation, a common mistake is the incorrect determination of free cash flow (FCF [t+1]) at the beginning of the stable, or long-term growth period, which can […]
DCF Valuation
Weighted Average Growth
It’s interesting that the valuation of an organization could be influenced by a simple analysis of growth rates despite the organization possibly experiencing rapid growth in the initial […]
DCF Valuation
Verification of a Fin Model
Verification of Financial Models Using Ratio Analysis When building a financial model to assess an organization’s intrinsic value and making future forecasts, it is crucial to verify the […]
Cross-Border Valuation
Cross-Border Valuation
When evaluating investments outside, two approaches are used: 1. Forecasting is done by the investor in the organization’s base currency or 2. Forecasting is done in the target […]
Real Estate Development
OCC of Real Estate Development
Investments in real estate consist of various stages, and at each stage, both the risk and the corresponding expected return (Opportunity Cost of Capital) differ. Initially, risks are […]