FMP
Learn Financial Modeling (5/5): Discounted Cash Flow statement (DCF) Methodology
5. Discover our Intrinsic Value and its meaning Enterprise value (EV) is a comprehensive measure of a company's total value that is frequently used in place of equity market capitalization because ...
Learn Financial Modeling (4/5): Discounted Cash Flow statement (DCF) Methodology
4. Calculate the Weighted Average Cost of Capital Before we begin, I'd like to define WACC and discuss why we use it....
Learn Financial Modeling (3/5): Discounted Cash Flow statement (DCF) Methodology
3. Find our Terminal Value The terminal value (TV) of an asset, business, or project is the value of the asset, busin...
Learn Financial Modeling (2/5): Discounted Cash Flow statement (DCF) Methodology
2. Build A Cash Flow Statement The Discounted Cash Flow Analysis is a valuation methodology that measures the intrins...
Learn Financial Modeling (1/5): Discounted Cash Flow statement (DCF) Methodology
1. What is a DCF model? A discounted cash flow model ("DCF model") is a type of financial model that estimates the va...
What is Liquidity and Why is Liquidity Important?
The world of finance can feel like a black box. The industry is full of complicated sounding ratios and grandeur terms. ...
Which ratios measure financial liquidity and how are these ratios calculated?
The finance world can often seem like an impenetrable black box, filled with complex ratios and lofty terminology. Howev...
Profit and Profitability: Understanding the Differences and Their Importance
Profit is the foundation of any business, driving its operations and growth. But how do we measure profit effectively an...
Which ratios measure profitability and how are they calculated?
In the last article we looked at the difference between profit and profitability. We learned that profitability is a mea...
What is Return on Equity, how do you calculate it, and why is it Important?
One of the most powerful ratios you can calculate is the profitability ratio Return On Equity (ROE). Its primary functio...