Growth
ROIC & Growth => CF
The amount of generated free cash flow is dependent on growth and return on invested capital (ROIC).
Archive
Reader level: Intermediate
Mergers & Acquisitions
Re-rating Illusion
It’s a widely spread misconception when investors believe that purchasing a company with a high P/E ratio from a company with a low P/E ratio automatically corrects both ratios to the higher one and not the average…
Market Efficiency
ESG Investing
ESG Investment: A Strategic Perspective for Business Executives Today, ESG (Environmental, Social, and Governance) investment is trending. You’ll find ESG ratings of corporations on brokerage platforms and other […]
Cross-Border Valuation
CoC in Cross-Border Valuation
When discounting cross-border cash flows, several questions arise: which country’s cost of capital should be used? In which currency? And how should the beta of a subsidiary company […]
Market Efficiency
Market Timing
Market Timing as a long-term investing opposition strategy, but there was a time when mutual fund managers were making not bed money. The point is that sometimes the […]
Interest Rates
Financial Risks
List of risks from the book – Financial Markets and Institutions – By Anthony Saunders, Marcia Cornett and Otgo Erhemjamts: Here’s the corrected list of risks from the […]
Risk
Altman’s Z Score
Did you know that Altman’s Z-Score predicts an organization’s bankruptcy with 95% probability one year in advance and 75% probability two years in advance? I generally don’t believe […]