What is the PRICE Function? The PRICE Function is categorized under Excel FINANCIAL functions. It will calculate the price of a bond per $100 face value that pays a periodic interest rate. In financial analysis, the PRICE function can be useful when we wish to borrow money by selling bonds instead of stocks. If we…
What is the PEARSON Function? The PEARSON Function is categorized under Excel Statistical functions. It will calculate the Pearson Product-Moment Correlation Coefficient for two sets of values. For example, we can find out the relationship between the age of a person and the appearance of grey hair. As a financial analyst, the PEARSON function is…
What is the SYD Function (Sum of Years Digits)? The SYD Function is an Excel Financial function. SYD is short for sum of years digits. This function helps in calculating the depreciation of an asset, specifically the sum-of-years’ digits depreciation for a specified period in the lifetime of an asset. Sum-of-years’ digits depreciation is a popular method in…
What are Directional Trading Strategies? Directional trading strategies are strategies that bet on the up or down movement of the market. For example, if an investor believes the market is rising, they would take a long position. On the other hand, if an investor believes the prices will drop, then they will take a short…
Pharmaceutical Industry Comps Template Comparable company analysis, also referred to as comps analysis or just comps, is a relative valuation method. CFI’s pharmaceutical industry comps template provides several companies that can be used to value Roche Holding AG, a company in the pharmaceutical industry. Comparable Company Analysis Comparable company analysis is a valuation method that uses…
Retail Industry Comps Template Comparable company analysis, often referred to as “comps,” is a valuation method that uses financial ratios of similar businesses to value a company. CFI’s retail industry comps template provides a number of comparable companies for Lululemon Athletica Inc. Comparable Company Analysis Comparable company analysis is a commonly used method of valuation. Comps…
Airline Industry Comps Template Comparable company analysis (“comps”) is a valuation method that allows companies to be valued based on financial ratios of similar businesses. CFI’s airline industry comps template provides a number of companies that can be used to value American Airlines Group Inc., a company in the airline industry. Comparable Company Analysis Comparable…
What is a Bermuda Swaption? A Bermuda swaption is an option that offers the buyer the right – but not the obligation – to take part in an interest rate swap on specified dates during the life of the option. Similar to Bermuda options, the Bermuda swaption is so called because the dates for interest…
What is a Synthetic Long Asset? Sometimes referred to as a synthetic long stock, a synthetic long asset is a strategy for options trading that is designed to mimic a long stock position. Traders create a synthetic long asset by purchasing at-the-money (ATM) calls and then selling an equivalent number of ATM puts with the…
What is the SLN Function (Straight Line)? The SLN Function will calculate the depreciation of an asset on a straight-line basis for one period. In financial modeling, the SLN function helps calculate the straight line depreciation of a fixed asset when building a budget. Learn more about various types of depreciation methods. Formula =SLN(cost, salvage,…
