Author - veristrat

Corporate Debt Restructuring

Raising capital through debt financing can be a very attractive option in an environment conducive to business growth. However, excess debt can lead to overwhelming financials problems and place a company’s future in jeopardy in times when the business [...]


Comments: 0 0Post Date: August 4, 2015

Sharpe Ratio; Risk vs. Reward

According to the behavioural portfolio theory an investor is risk averse and will always choose an investment that provides higher return compared to the risk of the investment. One of the most widely relied upon measure of risk and [...]


Comments: 0 0Post Date: July 29, 2015

EXIT STRATEGIES FOR PRIVATE EQUITY INVESTORS

The entrepreneurs work very hard to make their business a success, but it not only important to build a business worth a fortune but also have an exit strategy which is a way to get your money back. The [...]


Comments: 0 0Post Date: July 14, 2015

DISSECTING NON-COMPETE AGREEMENTS

Mergers & Acquisitions have become a common business strategy to consolidate businesses whereby an increase in market share is one of the plausible benefits of the transaction. However, the purpose of the transaction gets defeated if the seller starts [...]


Comments: 0 0Post Date: June 29, 2015

Cash Flow Adjustments for DCF Analysis

As individuals, we make personal decisions based upon the current cash available and expectation of future cash flows. Similarly, company’s current cash balance and future cash flow expectations help investors, managers and creditors take crucial business decisions which may [...]


Comments: 0 0Post Date: June 23, 2015
Beta of a Company

Beta (β) for an Unlisted (Private) Company

Valuation practices and guidelines aimed at valuation of unlisted or private companies provide some leverage into estimation of variables to be used in the process. One such grey area is calculation and use of Levered and Unlevered beta of [...]


Comments: 1 0

COMPONENTS OF DISCOUNTED CASH FLOW ANALYSIS

The Discounted Cash Flow Analysis (DCF) is one of the most widely used and accepted methods for calculating the intrinsic value of a company. In simple terms, discounted cash flow tries to work out the value of an asset [...]


Comments: 0 0Post Date: June 3, 2015

Discounted Cash Flow Analysis: Pros And Cons

A DCF valuation attempts to get to the value of a company in the most direct manner possible: a company’s worth is equal to the current value of the cash flows it will generate in the future. In this respect, [...]


Comments: 34 0Post Date: May 26, 2015
capital asset pricing model

Applications Of Capital Asset Pricing Model

The world of finance and valuation is a mix of art and science where every variable utilized has its own significance and a discount rate or required rate of return is one of them. Weighted Average Cost of Capital [...]


Comments: 8 0

RIGHTS ISSUE: A RIGHT OR A TRAP

Once a simple activity of raising capital has today become one of the most complex and carefully thought decision by corporates, during which everything from the cost of capital, return on equity to credit rating is considered before the [...]


Comments: 0 0Post Date: May 14, 2015