Category: Fundamental analysis
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Free Cash Flow to the Firm – FCFF | Explained
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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…
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Things to know before building the financial model | List of required Excel worksheets
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…
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Excel best practices while preparing financial models | List of important MS-Excel shortcuts
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,…
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What is financial modeling – It’s scope, uses, types, and how to build a financial model? | Explained
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…
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What type of an investor are you? | Difference between Growth Investor and Value Investor
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…
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Consumer Price Index (CPI) – One of the Most Important Macroeconomic Indicator
What is Consumer Price Index (CPI)? The consumer price index is an economic indicator and a measure of inflation. It is the weighted average increase in the household expense every month in each fiscal year. The household expense includes a basket of goods and services such as food and beverages, rental expense, education, entertainment, transportation,…
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Best Finance Book Ever Written | Top 9 Most Recommended Books!
There are a plethora of books available on the internet to learn finance. To make your work a bit simpler, I have done in-depth research and have brought to you the 9 most popular and best finance books ever written, which will sure shot help you in increasing your financial knowledge, self-growth, and personal finance. …
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How to read annual report | Important sections to look for!
Author: Vikas Tiwari What is an annual report? Annual report is a public document issued by the company at the end of every financial year which contain the details of the company with respect to the business model, the financial statements and many more. We will be breaking down “How to read annual report” in…