In this article, I will show you to how to value a company using the discounted cash flow model (DCF), and will guide you through a complete DCF valuation for a real company on the stock market. By doing so, we'll be able to estimate the company's intrinsic value, which will tell us whether the […]
In this article, I will cover how to accurately estimate terminal value, which is a figure you'll need to calculate when using the discounted cash flow model (DCF) to value businesses. I'm also going to discuss three ways of calculating the terminal value, in regards to companies on the stock market, and which method to […]
In this article, I will discuss the importance of return on invested capital, how you can calculate it, what company information the figure provides to investors, and how you can analyze this figure to make better investment decisions. I'll also provide several examples along the way to guide your understanding. The short answer on why […]
Owners earnings, or cash flow for owners, is a figure that is commonly used for intrinsic value calculations, and is one of the best figures to depict how much cash one can get out of an investment. Most investors use earnings per share (EPS), net income, or some other figure to assess the cash generated […]