Explained: Free cash flows, types, and valuation
Explained: Free cash flows, types, and valuation

Explained: Free cash flows, types, and valuation

As free cash flows provide a sound basis for evaluation, it is often considered that free cash flow models are more useful than DDM models, in practice.

Shreya Chaware Article rating: 4.3

Discounted cash flow, which is popularly known as DCF valuation, denotes the intrinsic value of a security as the present value of its expected future cash flows. When applied to dividends, the DCF model is the discounted dividend approach or dividend discount model (DDM).  

Is Justified P/E ratio same as Standard P/E ratio? Let's find it out in the below article!
Is Justified P/E ratio same as Standard P/E ratio? Let's find it out in the below article!

Is Justified P/E ratio same as Standard P/E ratio? Let's find it out in the below article!

Justified P/E associates a particular value of the P/E with a set of forecasts of the fundamentals and the dividend payout ratio.

Shreya Chaware Article rating: 4.9

The valuation of a company is a critical aspect for analysts and investors studying a potential company for investment purposes. The most commonly used, valuation metric is the price-to-earnings ratio which is, defined as the ratio for the valuation of the company, which measures its current share price relative to its earnings per share (EPS).  

Explained: EV to sales ratio
Explained: EV to sales ratio

Explained: EV to sales ratio

EV to sales ratio is one of the simplest multiples for valuation purposes. During the process of mergers and acquisitions, the ratio gives all parties a good idea.

Shreya Chaware Article rating: 4.3

Enterprise value-to-sales (EV/sales) is a financial ratio measuring the company’s total value (in enterprise value terms) to its total sales revenue. To simplify more, it is EV per dollar of sales. This means that the higher the ratio, the more ‘expensive’ or valuable the company is, and vice versa. The ratio is used for financial analysis and valuation strategies while doing research for a potential investment. 

Which type of investor are you - hedger, speculator or arbitrageur?
Which type of investor are you - hedger, speculator or arbitrageur?

Which type of investor are you - hedger, speculator or arbitrageur?

Investors prefer derivatives as they facilitate price discovery, strengthen the underlying asset's liquidity, and work effectively as a hedging tool.

Mandar Wagh Article rating: 5.0

Investors prefer derivatives as they facilitate price discovery, strengthen the underlying asset's liquidity, and work effectively as a hedging tool. 

Why do investors prefer derivatives over underlying assets?
Why do investors prefer derivatives over underlying assets?

Why do investors prefer derivatives over underlying assets?

A ‘derivative’ is a financial contract or a security with a price. Derivative contracts come in many different forms, such as forwards, futures, options, and swaps.

Mandar Wagh Article rating: 4.9

A ‘derivative’ is a financial contract or a security with a price. Derivative contracts come in many different forms, such as forwards, futures, options, and swaps.  

Here are the key terms one must know while analysing a bank’s financial performance
Here are the key terms one must know while analysing a bank’s financial performance

Here are the key terms one must know while analysing a bank’s financial performance

With the rising interest rates and looming recession, it becomes of utmost importance to analyse a bank’s ‘health condition’.

Rohit Kale Article rating: 4.4

In this educative article, we shall introduce you to the basic banking terms that are a ‘must-know in analysing financial reports.

Using this analysis framework while investing could multiply your wealth many times over!
Using this analysis framework while investing could multiply your wealth many times over!

Using this analysis framework while investing could multiply your wealth many times over!

EIC Framework is a top-down approach tool, and as the name implies, the researcher focusses on the economy, industry, and finally, the company.

Mandar Wagh Article rating: 4.1

EIC Framework is a top-down approach tool, and as the name implies, the researcher focusses on the economy, industry, and finally, the company. 

Economic recession and its impact on stock market returns
Economic recession and its impact on stock market returns

Economic recession and its impact on stock market returns

What history suggests about the economic recession and stock market returns.

Shashikant Singh Article rating: 3.8

The most common definition of recession requires the GDP of a country to contract in two successive quarters. 

Know what PEG ratio is!
Know what PEG ratio is!

Know what PEG ratio is!

The degree to which a result of the PEG ratio indicates an overpricing or underpricing stock varies according to industry and by company type.

Shreya Chaware Article rating: 4.8

PEG ratio is a company’s price/earnings ratio divided by its earnings growth rate over a period of time. The PEG ratio adjusts the traditional P/E ratio by taking into account the growth rate in the earnings per share that are expected in the future and it is considered to provide a more complete picture than the more standard P/E ratio.  

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Tax Column

Tax Column

I am employed with a closely held private limited company. During the current...