Trading News
Can Bitcoin Protect You From Inflation?In other articles, we’ve argued that bitcoin and cryptocurrency can have a place in a balanced portfolio. In other words, some is okay, but too much can venture into speculation. (How Much of a Portfolio Should Be in Cryptocurrency?) The main limitation is its high volatility and high correlation to other kinds of assets (riskier […]
Determining Company Value with Precedent TransactionsPrecedent transactions is among the major three types of valuation methods used for companies, in addition to discounted cash flow (DCF) and company comparable analysis (“comps”). Precedent transactions modeling is predicated on the idea that a company can be valued by analyzing the selling prices of similar companies under similar purchasing conditions in the past. […]
The Effects of Restructuring on Valuation using DCFBusiness executives may elect to undergo firm restructuring to change the operational structures of their companies for purposes of making it more profitable (e.g., lower tax burden) or better organized for its current needs. Or it can be done out of necessity due to a demerger, buyout, insolvency, or basic marketing needs. Restructuring is frequently […]
Valuing Synergy in the Mergers and Acquisitions ProcessSynergy measures the degree to which two firms function more efficiently or more profitably relative to how they perform as individual entities. The idea behind synergy is one of the central purposes of completing a merger in the first place. If the two corporations aren’t more profitable or better off in some fashion together, what […]
Assessing the Value of Control in a FirmThe value of control in a firm represents the level of premium that might be expected to be paid if it were acquired in dollar terms. When a company is acquired for a majority share, the previous regime is very likely to forfeit its decision-making power, as it’s one of the central objectives in a […]
Reconciling the Gross Debt vs. Net Debt Approach to ValuationIn addition to the previous models of valuation we have covered, firm valuation can also be estimated using the debt type associated with the business – gross or net. Like all financial models, where assumptions are inherent within their foundation in order to produce results and estimations, gross and net debt make their own assumptions […]
M&A Analysis: Mergers and Acquisitions Transaction HypotheticalIn this article, we’ll go through a hypothetical M&A transaction to look at the basic components and how to analyze one (M&A analysis). M&A analysis is important as mergers, acquisitions, and business combinings are a big part of the financial world. Many financial professionals – investment bankers, private equity, hedge funds and traders (e.g., merger […]
How to Complete a Cash Flow Statement from the Income Statement and Balance SheetIn this article, we’ll go over how to complete a cash flow statement from the income statement and balance sheet and how to analyze and interpret the cash flow statement. In accounting, the balance sheet, income statement, and cash flow statement are referred to as the “three statements.” Let’s go through each individually: Balance Sheet […]
XTB Offers Zero Commission Stock Trading On CFDsTop-rated online broker, XTB, has introduced commission-free trading on its range of stock CFDs. The revised pricing structure means low-cost trading opportunities for new and established investors. The offer is open to all traders registered in the United Kingdom. Commission-Free Stock CFDs More than 2,000 share CFDs will be available without a commission charge. This […]
Plus500 Obtains A License The Financial Supervision AuthorityUK-listed Plus500 has secured a license from Estonia’s Financial Supervision Authority (FSA). This will enable the brand to operate as a licensed investment firm and offer ancillary services. The forex and CFD broker has also appointed a new CEO of its Estonian entity – Sigrid Aljas. Read on for the details. FSA License The Financial […]
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