Posts by mac36684

Learn Sum-of-the-Parts (SOTP) valuation: formula, step-by-step method, a worked example, discounts, and mistakes to avoid when valuing conglomerates.

Economic Value Added (EVA) explained: the formula, NOPAT, invested capital, WACC, a worked example, and how EVA compares to ROIC, DCF, and residual income.

Residual income valuation explained: formula, step-by-step model, a worked example, and how it compares to DCF — a complete guide for investors and analysts.

EV/EBITDA vs P/E: learn what each valuation multiple measures, when to use each, worked examples, industry differences, and how professional investors combine both.

Learn the difference between Enterprise Value and Equity Value, including formulas, calculation examples, market capitalization, net debt, EV/EBITDA, DCF valuation, and stock analysis.

Learn free cash flow valuation with a detailed comparison of FCFF vs FCFE, including formulas, DCF models, WACC, cost of equity, terminal value, and worked examples.

A hands-on tutorial that builds a complete DCF model step by step — historical financials, FCFF, WACC, terminal value, and intrinsic value per share — with a full worked example.

Learn how professional investors use DCF valuation to estimate intrinsic value — free cash flow, WACC, terminal value, sensitivity analysis, and a full worked example.

Learn how investors estimate a stock's intrinsic value using DCF, dividend discount, and relative valuation, and how it compares to market price and margin of safety.

Learn what an economic moat is, the 5 types of durable competitive advantages, and how to identify companies that can defend profits long-term.