Blog Posts

A portfolio is a collection of financial investments like stocks, bonds, cash equivalents, fund units, etc., held by investment companies, hedge funds, or individual investors. The concept of a portfolio stems from the theory of diversification, which proposes that a trader/investor can reduce risk by putting their funds in different kinds of investments/trades/returns streams.   […]

Financial modeling refers to the process of creating a summary of a company’s expenses, earnings, and performance. It’s used to predict, understand, and optimize the company’s financial performance, particularly in terms of cash flow, the required return, terminal value, and forecasted financial statements.   Key Takeaways – Financial Modeling Financial Modeling: Creating summaries of a […]

Determining the true value of a company is not always straightforward. Beyond the mainstream methodologies are various unique approaches to valuation, each offering a distinct perspective on a company’s worth. We look at techniques that may not be as widely recognized, but are equally viable in the right context and application. From the classic fundamentals-based […]

Relative valuation, also known as comparable valuation, is a method used to determine the value of different assets including bonds, real estate, and equities. This technique involves comparing the asset in question with other similar assets to derive its value. Let’s look into how relative valuation is applied across different asset types.   Key Takeaways […]

An embedded option is a feature that can be attached to bonds that allows, but does not require, either the bondholder or the issuer to take some action in the future. It gives one party the right, but not the obligation, to undertake certain actions that may be advantageous given market conditions.   Key Takeaways […]

Determining the value in markets is an important part of investing and trading. To understand how to determine value, we’ll cover several key concepts and principles, including fair value, intrinsic value, market price, expected value, opportunity cost, and risk premium. These concepts will then be framed in the context of valuation risk, real versus nominal […]

Investment banking is a highly competitive and lucrative industry that offers numerous career opportunities for individuals with a strong financial background. However, securing a job in investment banking requires passing rigorous interviews, where candidates are tested on their knowledge, skills, abilities, and behavioral tendencies. Accordingly, it’s important for aspiring investment bankers to be well-prepared and […]

Capital budgeting, also known as investment appraisal, is a fundamental aspect of corporate finance. It refers to the process by which a company plans and manages its long-term investments. A component of this process is valuation – understanding and quantifying the value of these investments.   Key Takeaways – Capital Budgeting Capital budgeting is a […]

Dividend policy refers to the guidelines a company uses to decide how much of its earnings it will pay out to shareholders in the form of dividends. Companies have a range of dividend policies to choose from, and the choice depends on a multitude of factors. The selection of a dividend policy has a significant […]

Capital structure refers to the composition of a firm’s funding sources. It is a blend of debt, equity, and hybrid securities used to finance a company’s operations and growth initiatives. Understanding capital structure is important for investors, traders, and business managers. It provides insights into a company’s risk profile, operational flexibility, and potential for future […]