●Intrinsic Valuation- The value of a company determined by fundamental analysis ●DCF- The sum of all the cash flows it will generate, discounted to the present value at a rate that reflects the riskiness of the cash flows ●Discount Rate- The required rate of return for the investors and is a function of the riskiness of the cash flows ●How to get Free Cash Flow- ○Revenue ○(COGS) ○(Operating Expenses) ○(Interest and Tax) ○Net Income ○Cash Flow From Operations: Net Income - Change in Working Capital ○FCF: Cash Flow From Operations - CapEx ●Forecasting Cash Flow Statement ○Working capital is usually a fixed percentage of revenue ○CapEx/revenue: take the average of that and that is how you will forecast the rest of Cap Ex ○Depr. and Amort/revenue: percentage and use it to forecast D&A into the future ●WACC- Cost of raising new capital ○WAAC = discount rate ■Discount rate = risk
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AuthorMy name is Camden Alchanati and my goal is to teach you how to create a future of financial stability and growth! Archives
June 2020
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