What is Adjusted EBITDA? Adjusted EBITDA is a financial metric that includes the removal of various one-time, irregular, and non-recurring items from EBITDA (Earnings Before Interest Taxes, Depreciation, and Amortization). The purpose of adjusting EBITDA is to get a normalized number that is not distorted by irregular gains, losses, or other items. It is frequently…
What is CFD Trading? CFD (Contracts for Difference) trading is increasingly popular with experienced investors, but anyone can try it. Most online trading platforms offer contracts for difference trading to their customers. It is a potentially high-risk trading strategy, but as long as you understand how CFD trading works, you can minimize your risk exposure….
What is Sweat Equity? Sweat equity is a non-monetary contribution that the individuals or founders of a company make towards the company. Cash-strapped startups and business owners typically use sweat equity to fund their companies. For example, the founder of a tech startup company may value the efforts placed towards developing the company at $200,000….
What are Option Pricing Models? Option Pricing Models are mathematical models that use certain variables to calculate the theoretical value of an option. The theoretical value of an option is an estimate of what an option should be worth using all known inputs. In other words, option pricing models provide us a fair value of…
What is a Gantt Chart? The Gantt Chart is a type of a bar chart used to depict the schedule of a project. The chart was developed at the beginning of the 20th century by Henry Gantt, an engineer and management consultant. The Gantt Chart is a powerful project management tool that illustrates the start…
Cover Letter Template for a Job Application A cover letter can make or break a job application so it’s critical to get it right. Whether your letter is being read by HR or the hiring manager directly, there are several important boxes you must tick. This guide provides a free cover letter template and explanation…
How Do Dilutive Securities Impact Share Prices? Dilution can be caused due to a number of dilutive securities such as stock options, restricted and performance stock units, preferred stock, warrants, and convertible debt. Dilution may cause the share price to decline because it reduces the company’s earnings per share (EPS). The extent of the decline…
What are Real Options? Real options are a right but not an obligation to make a business decision. The concept of a real option is crucial to the success of a business as the ability to choose the right business opportunity bears a significant effect on the company’s profitability and growth. A real option allows…
What is a Tear Sheet? In the world of finance, a tear sheet provides a one-page summary of the company with information such as Market Price, 52-week High and Low, Market Capitalization, Enterprise Value, Analyst Recommendation, Revenue, EBITDA, Valuation, Workforce Size, Share Price Movement, etc. Tear sheets are also known as “Fact Sheets” and help…
What are Trading Multiples? Trading Multiples are a type of financial metrics used in the valuation of a company. When valuing a company, everyone relies on the most popular method of valuation, i.e. Discounted Cash Flow (DCF), but it becomes imperative for buyers and bankers to look how the market perceives a particular stock in…
