Blog

Learn how Quality of Earnings Analysis helps investors spot earnings manipulation, from accruals and cash flow to the Beneish M-Score and financial red flags.

Owner Earnings vs Free Cash Flow: compare formulas, maintenance capex, working capital, and valuation uses to find the metric that fits your analysis.

Precedent Transaction Analysis explained: how transaction multiples, comparable deals, and acquisition premiums are used to estimate M&A valuation.

Learn how Comparable Company Analysis works — peer selection, EV/EBITDA, P/E, and valuation multiples — to estimate a company's implied value.

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.