What is FCFF? Free Cash Flow to the Firm or FCFF is the cash flow i.e. available to all the stakeholders of the business i.e Equity shareholders, Debt holders, Preference shareholder, Convertible bondholders, Stock option holder, etc. It is used to determine the Enterprise Value (EV) of the firm. FCFF is the actual cash flow…
There are few things that a modeler should know before building the financial model. We will try to keep this post as short as possible and most importantly to the point, which will help you to build the model with much more ease. Start with determining the number of tabs or worksheets to be…
As a Financial Analyst, your key goal, while building a financial model, is to improve its transparency and audibility. Below are some of the Excel best practices while preparing financial models and list of important MS-Excel shortcuts 1. Color Coding: There are no hard and fast rules in assigning color codes to various inputs,…
What is financial modeling? Financial modeling is a tool for decision making, let me elaborate, whenever you want to make a decision or let’s say a sensible decision, you need some data, some information, some calculation to support that. That usage of information, data to decide something is nothing but a financial model. Let’s narrow…
Hi Pals, if you are new here, so just let me introduce you to “The Finance Magic” which is all about spreading financial knowledge. If you are new to the world of finance, then this is a place where you could rely without any doubt. So before moving on lets first understand a little bit…
Porter 5 forces model, a strategic framework that probably every business students and practitioner has heard about. But do you also know how to use it properly? Today you will be finding it out because I’m going to tell you everything you need to know about Porter’s 5 forces. History: In 1979, Michael Porter,…
What is private equity? What do private equity firms actually do? Which are the different types of strategies they pursue and what is the typical structure of a private equity firm? These are some of the questions we would try to answer in this article, but first things first why the name…
In this article, we are going to have a look at the different stages a business goes through and the different ways the business can raise capital in order to grow. In the lifetime of a business, there are various stages that almost all companies have to go to and the type of investments for…
Neobanks are basically FinTech’s offering digital banking services ranging from faster account opening, mobile deposits, digital debit and credit cards, transferring payments and many more service without the burden of visiting any physical bank. Neobanks are often partnered with traditional banks as they don’t have regulatory licences. Partnered banks provide them a platform to build…
“Stock market” the word sounds very interesting. People rarely know the actual purpose of “Why does the stock market exists?” Often beginners tend to invest in the stocks of multiple companies based on someone’s suggestion, it could be anyone either from your family, friends, local shopkeeper, building uncle, etc just kidding but it’s a general…
