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Finance (valuation of assets Value of assets=Debt + Equity (discounted…
Finance
valuation of assets
Value of assets=Debt + Equity
discounted cash flow analysis
multiples method
market valuation
comparable transaction method
basic accounting concepts
balance sheet
Assets=Liabilities (L) + Shareholders Equity (SE)
income statement
The result of operations of a business over a period of time
Net Income = Revenues - Expenses
statement of cash flow
operating activities
investing activities
financing activities
statement of retained earning
Valuation
Market Valuation
Market Capitalization = Stock price * Number of Shares Outstanding
Methods to calculate the NPV (Net Present Value)
Discounted Cash Flow (DCF)
Net Present Value
Discount rate is a risk measure
Present Value = Future Value /(1+rd)^n
rd is discount rate
n is number of years in the future
Opportunity cost is a measure of the opportunity loss
Adjusted Present Value (APV)
Weighted Average cost of capital (WACC)
Methods to find discount rate
Capital Asset Pricing Model