What is Terminal Value and How Does it Relate to Financial Analysis?

When analyzing a company’s financials, one of the most important concepts to understand is terminal value. Terminal value is the estimated future cash flow of a company after a specific period of time, typically 5-10 years. The purpose of calculating terminal value is to estimate the value of a company beyond the forecast period. There […]

Internal Rates of Return and What They Mean for Your Business

As a business owner, you are always looking for ways to improve your bottom line. One way to do this is to invest in projects that have a positive internal rate of return (IRR). But what exactly is IRR, and how can it be used to make sound financial decisions? IRR is a metric used […]

NPV and Financial Analysis: What You Need to Know

Net present value (NPV) is a financial metric that businesses use to analyze investments. In short, it measures the difference between the present value of cash inflows and the present value of cash outflows. Put simply, it tells you whether an investment is likely to be profitable or not. Business owners need to understand NPV […]

How Does Current Yield Relate to Financial Analysis?

When you are conducting financial analysis on potential investments, current yield is just one of the indicators that you have to consider. It is important to remember that current yield does not take into account the capital gains or losses that you may realize when you sell the asset. For example, if you purchase a […]

What is Current Yield and How Does it Relate to Financial Analysis?

As a business owner, you are always looking for ways to improve your bottom line. One way to do this is to invest in assets that will generate income. When you are considering an investment, one of the key indicators that you will look at is the current yield. In this blog post, we will […]