Risk
Crystal Ball
Oracle’s Crystal Ball – priced excel supplement for difficult financial and strategic solutions. Used in the modeling of Montecarlo simulation and optimizing decisions:
EON Investment Insights
Understand stock price as a forecast
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Interest Rates
Fisher Effect
Fisher Effect: The higher the inflation expectations, the greater the pressure on the securities market. Fisher Formula:i = (RIR + Expected-IP) + (RIR*Expected (IP)). Intuitively: The level of […]
Interest Rates
Default/Credit Risk Factor
Default Risk: DRP = Ji – Ti Default or credit risk is the risk that the payer will delay or fail to pay the tranche (interest or principal) […]
Interest Rates
Unbiased Expectations Theory
Unbiased Expectations Theory – What are the market’s expectations regarding interest rates? The Unbiased Expectations Theory essentially states that long-term interest rates are determined by the expected short-term […]
Interest Rates
Liquidity & Expectation Hypos
#liquidity risk premium & #unbiased expectations hypothesis. Money can be discussed as a negative NPV asset because it does not yield interest income, while on the other hand, […]
Interest Rates
Maturity Premium
Directly affects the effectiveness of financial assets’ performance periods on interest rate movements. This moment is crucial because, despite the intuition that longer-term bonds are more sensitive to […]
Interest Rates
Market Segmentation Theory
Market Segmentation Theory – This theory reflects the impact of events in different segments of financial markets on the relationship between interest rates and loan maturities. The theory […]
Interest Rates
Convexity & Barbell Strategy
Convexity describes the curvature of the relationship between the price of an obligation and changes in interest rates. Consequently, it’s an important concept because, during interest rate fluctuations, […]
VC Valuation
www.vcvtools.com
When investing in a startup, it’s necessary to assess how much the share is worth… From a certain number of evaluations, the most accurate composition of the Exit […]
DCF Valuation
Economic Balance
This is an Economic Balance Sheet, which differs from a traditional accounting balance sheet by focusing on economic values rather than book values. It presents the firm’s total […]
DCF Valuation
APV & WACC – DCF
DCF Valuation Methods: APV and WACC In business valuation using the Discounted Cash Flow (DCF) method, there are two primary approaches: the Adjusted Present Value (APV) method and […]
DCF Valuation
Valuation Insights
Why should financial professionals use the “Monte Carlo simulation” function of #Excel? The results of the evaluation are subjective in any case. We perform experiments that create probabilities. […]
DCF Valuation
RONIC
One crucial question that arises during organizational valuation is how to forecast ROIC in the stable growth phase? For example, if we assume zero real growth in the […]
Mergers & Acquisitions
Merger influence on WACC
When organizations start merging, there’s a lot of talk about synergistic effects, but it’s difficult to accurately predict these effects in monetary terms… In good cases, the strategic […]
Mergers & Acquisitions
Merger – Cash vs Shares
When one company acquires another: When a merger occurs through the exchange of shares, the acquiring organization invests in the target organization’s shareholders, targeting the distribution of risks […]