Valuation: Definition & Reasons for Business Valuation
Reasons for Performing a Valuation. Valuation is an important exercise since it can help identify mispriced securities or determine what projects a company should invest. Some of the main reasons for performing a valuation are listed below. 1. Buying or selling a business. Buyers and sellers will normally have a difference in the value of a ...
Learn Valuation - Corporate Finance Institute
Valuation is the process of determining the value of a business or asset and can be determined using a variety of methods and techniques. Three common valuation methods used by industry practitioners are DCF analysis, comparable company analysis, and precedent transaction analysis. Read more
Financial Modeling & Valuation Analyst (FMVA®) Certification
CFI's Financial Modeling & Valuation Analyst (FMVA®) Certification imparts vital financial analysis skills, emphasizing constructing effective financial models for confident business decisions. This comprehensive program ensures mastery in modeling, budgeting, forecasting, and overall competency in accounting and finance.
Top 10 Financial Models | Corporate Finance Institute
Learn the top 10 financial models used in finance: DCF, LBO, M&A, and more.
Comparable Company Analysis - Corporate Finance Institute
Comparable company analysis (or “comps” for short) is a valuation methodology that looks at ratios of similar public companies and uses them to derive the value of another business. Comps is a relative form of valuation, unlike a discounted cash flow (DCF) analysis, which is an intrinsic form of valuation .
How is Currency Valued - Overview, History, Measurement
Summary. Currency value is determined by aggregate supply and demand. Supply and demand are influenced by a number of factors, including interest rates, inflation, capital flow, and money supply.
Free Cash Flow (FCF) Formula - Corporate Finance Institute
FCF Formula in Financial Modeling, Analysis, and Valuation For professionals working in investment banking , equity research, corporate development, financial planning & analysis ( FP&A ), or other areas of corporate finance, it’s very important to have a solid understanding of how FCF is used in financial modeling .
Beta - What is Beta (β) in Finance? Guide and Examples
The beta (β) of an investment security (i.e., a stock) is a measurement of its volatility of returns relative to the entire market. It is used as a measure of risk and
Gordon Growth Model - Guide, Formula, Examples and More
In corporate finance, the DCF model is considered the most detailed and thus the most heavily relied on form of valuation for a business. What is the Importance of the Gordon Growth Model? The Gordon Growth Model can be used to determine the relationship between growth rates, discount rates, and valuation.
Annual Recurring Revenue (ARR) - Definition, Calculate
As you can see there is a heavy focus on financial modeling, finance, Excel, business valuation, budgeting/forecasting, PowerPoint presentations, accounting and business strategy. A well rounded financial analyst possesses all of the above skills!