Price Earnings Ratio
What is the Price Earnings Ratio? The Price Earnings Ratio (P/E Ratio) is the relationship between a company’s stock price and earnings per share (EPS). It is a popular ratio that gives investors a better sense of the value of the company. The P/E ratio shows the expectations of the market and is the price...
Free Cash Flow (FCF) Formula
What is the Free Cash Flow (FCF) Formula? The generic Free Cash Flow (FCF) Formula is equal to Cash from Operations minus Capital Expenditures. FCF represents the amount of cash generated by a business, after accounting for reinvestment in non-current capital assets by the company. This figure is also sometimes compared to Free Cash Flow to...
Valuation Principles
What are Valuation Principles? Business valuation involves the determination of the fair economic value of a company or business for various reasons such as sale value, divorce litigation, and the establishment of partner ownership. Image: CFI’s Business Valuation Modeling Course. Key Principles of Business Valuation The following are the key principles of business...
Paper Wealth
What is Paper Wealth? Paper wealth refers to an individual’s or company’s wealth, measured by assets that are listed on paper. In other words, paper wealth is a speculated amount of wealth, determined as the money that could potentially be generated when the assets of an individual or company are sold. Paper Wealth vs. “Real”...
Equity Research Interview Questions
What are the Most Common Equity Research Interview Questions? Based on our first-hand experience, as well discussions with equity research professionals, we’ve compiled a list of the top questions to be asked by a research analyst when interviewing an associate. We’ve also added what we think are the best answers to these challenging interview questions. Here are the...
