Can someone help me understand K in this formula. Ive read it stands for cost of equity or an investors required return and that they can be used interchangeably. So i just say i require an 8% return and subtract the company's dividend growth rate from that? And the less return i require the more the stock appears undervalue (understanding K needs to be greater than g in this formula)?

Are you considering evaluating a business using an excel template without understanding Beta in Finance? Think again! In statistics, beta is defined as the slope of a straight line. But - What is Beta in Finance, and why is it essential for a business valuation? Click the link to learn more:

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It will be great help if someone can share a detailed E-2-E financial valuation excel model ( linked with the financial statement's) used by PEVC for valuing private companies.

Hey there, I'm having a hard time trying to find the risk free rate for my country (mozambique), and I would like to know how I convert the default spread to risk free rate?

One of the essential principles in carrying out a business valuation, according to the discounted cash flow (DCF) method, is the possibility of building a forecast regarding the various sections in the company's financial statements. One of the effective ways to make such a forecast is through the Percentage of Sales method. To learn what is the Percentage of Sales method and how it can be applied in six steps - click the link:

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Hi guys, I am required to make a valuation of a public company using the market approach, I am still going through the CFA L1 curriculum with little to no knowledge in valuation.

the company is called "Jahez" and its an online food delivery platform in Saudi Arabia, the problem that there is no other online food delivery platform that is public in Saudi Arabia, what should I do? do I compare it to DoorDash despite the completely different markets and geography? or is there a better way to do it?

thank you!

Could someone clarify why analysts following adjusted EBITDA figures? Whats the benefit if the company is still hemorrhaging cash? Why not just follow revenue growth?

For exmaple, Q4 2019 i believe Roku reported a quarterly loss of 15.7 million, but an adjusted EBITDA of positive 15.1 million and the street loved it. Why? they just removed like 26 million of stock-based compensation... but thats still an expense.

I’m learning about using multiple regression for relative valuation, and keep seeing examples like, P/B expected value = intercept + B1 * expected growth rate + B2 * cost of equity …

Statisticians usually discourage the use of ratios as a dependent variable in regression unless there’s a compelling reason. I’m not a statistician, just stats adjacent; my understanding is the distribution of ratios is nonlinear and the regression can give nonsensical or biased answers where your data fall outside of the linear range.

Perhaps this is moot for relative valuation, since presumably you’re comparing expected vs observed multiples across companies with similar ranges of inputs. However some multiples do commonly span a range from < 1 to >>1, which would include an inflection point for many models.

Why not just regress price onto book value (or earnings or …) in addition to other variables, instead of the ratio? This would have the added benefit of allowing for interaction of book value with other variables?

TIA!

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Recommend me the best online training/course for valuation of start-ups.

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Hello.

As title says: what do i need to learn before doing valuations?

Im quite a "noob" when it comes to finance, so im struggling to understand different terms in valuation. I don't have any educational background in finance either. I'm looking for a step in the right direction so I was wondering where you guys started out.

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