Subscribe
Author Archives: admin
The Challenges Of Valuing A Small Business
I perform about four to five small business valuations a week and understand the challenges of this process. Let’s explore this in detail. Lack of Uniform Accounting. Publicly traded companies are required by SEC law to conform with generally accepted … Continue reading
Forecast: The Market Will Bounce Before It Crashes
In the chart above, we see that the VIX has shot up to its highest levels since March 2011. The VIX is a popular measure of implied volatility for the S&P 500 index options. The price of an option contract … Continue reading
To Borrow Or Not To Borrow?
We’ll apply Financial IQ to capital structuring decisions and focus on the question of using debt instruments. WACC. We use weighted average cost of capital (WACC) as our discount rate in DCF valuations because its the return necessary to satisfy … Continue reading
What Caused The Euro Crisis?
The euro boasts a common central bank but it lacks a common treasury. Member countries share a common currency, but when it comes to sovereign credit they are on their own. This fact was obscured until recently by the willingness … Continue reading
How To Perform A Discounted Cash Flow Valuation?
The Discounted Cash Flow (DCF) method determines the present value of expected future cash flows. After forecasting the future cash flows to be generated by a business, discount them back to the present using a discount rate (which could be … Continue reading
Posted in Business Valuation
1 Comment
How To Measure Financial Performance?
Financial ratios provide insights regarding the financial performance of a company, but they do not explain the underlying root causes of this performance or non-performance. For the purpose of comparing the financial performances between companies, an accountant will create a … Continue reading
How To Value A Business?
Whether you’re looking to procure capital financing for a business, qualify for a loan, sell or buy a business, or set-up an employee stock option program, a business person needs to know how to value a business. Let’s look at … Continue reading
Posted in Financial Analysis
Leave a comment
Will The Stock Market Crash In June 2011?
On March 3, 2011, I forecasted on this Zempower blog that we could double-dip into a global depression. On February 21, 2011, this blog forecasted that the S&P 500 could drop to 5,000 sometime in 2011. No one can ever … Continue reading
Posted in Stock Market, Technical Analysis
1 Comment
