Growth
DuPont Analysis
Sure, here’s the translation: When making a price-sensitive purchase decision, it’s important to evaluate the financial performance of the organization. This careful scrutiny doesn’t replace market research but […]
EON Investment Insights
Understand stock price as a forecast
“I constantly see people rise in life who are not the smartest, sometimes not even the most diligent, but they are learning machines” - Charlie Munger
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Cross-Border Valuation
Cross-Border Valuation
Sure, here’s the translation in English: During project evaluations, a common error often occurs when incorrectly assessing the present value of selected capital, which is heavily dependent on […]
Mergers & Acquisitions
Mergers & Acquisitions
რა ხდება ფასიანი ქაღალდების ბაზარზე ერთი კომპანიის მიერ მეორეს შესყიდვისას ან თანაბარ-უფლებიანი შერწყმისას? ასეთი ოპერაციები ხშირდება ეკონომიკის აღამვლობის ფაზაში. ზოგჯერ სახელმწიოფო რეგულაციებიც ასტიმულირებს. მაგრამ, იმის გასაგებად თუ რა […]
Derivatives
Option Types
An American Option Differs from a European Option An American option can be exercised at any time before the expiration date, whereas with a European option, you must […]
Real Estate Development
Best Use and Option Analysis of Land Value
To determine the intrinsic value of development land, the Highest and Best Use Analysis technique is employed. Naturally, the intrinsic value of development land is derived from the […]
Real Estate Investments
Risk & Return in Real Estate
Risk Description Example Business Risk Income varies with economic activity and market conditions. High vacancy rates during a recession reduce rental income for office buildings in downtown areas. […]
Real Estate Investments
Positive vs Negative Leverage in Real Estate
Based on the impact of leverage on the return on equity invested, the concepts of positive and negative leverage exist in the real estate sector. Three main parameters […]
Real Estate Investments
Property Value Sensitivity
In this post, I aim to demonstrate how sensitive the long-term value of real estate can be to short-term shocks. By “shocks,” I mean unplanned changes in both […]
Real Estate Investments
Fair Value of Income Properties
There are simple and professional methods for valuing an income-generating real estate asset. Simple methods primarily involve determining the market price with minor adjustments based on comparable asset […]
Real Estate Development
Deliver Profitability in RE Development
How to Make a Construction-Development Project Profitable?
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 […]
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 […]
Market Multiples
P/E – Multiple
Should Professionals Invest in Equities Based on P/E Ratios? Evaluating the Usefulness of P/E Ratios for Investment Decisions Many investors rely on the Price-to-Earnings (P/E) ratio as a […]