Featured Articles
Relative Valuation
RELATIVE VALUATION The objective of discounted cash flow valuation is to determine the value of an asset based on its cash flow, growth, and risk. Relative valuation seeks to determine an asset's value by examining current market prices for comparable assets. Although...
Gross Rent Multiplier
What is a Gross Rent Multiplier (GRM)? You may determine the market value of an income property using the gross rent multiplier (GRM). Its a market-driven measurement. The market worth of a property you are contemplating for purchase should equal that same "X times"...
What is REIT?
What is a "REIT" (Real Estate Investment Trust)? REIT or a real estate investment trust (REIT) is a business that owns, operates, or finances real estate that brings in money. REITs are like mutual funds –they collect the money of many investors and invest. This means...
Latest Posts
Relative Valuation
RELATIVE VALUATION The objective of discounted cash flow valuation is to determine the value of an asset based on its cash flow, growth, and risk. Relative valuation seeks to determine an asset's value by examining current market prices for comparable assets. Although...
Gross Rent Multiplier
What is a Gross Rent Multiplier (GRM)? You may determine the market value of an income property using the gross rent multiplier (GRM). Its a market-driven measurement. The market worth of a property you are contemplating for purchase should equal that same "X times"...
What is REIT?
What is a "REIT" (Real Estate Investment Trust)? REIT or a real estate investment trust (REIT) is a business that owns, operates, or finances real estate that brings in money. REITs are like mutual funds –they collect the money of many investors and invest. This means...
What is Return on invested capital?
Return on invested capital (ROIC) is one of the finest indications of a company's capacity to increase its value. What exactly is ROIC? Return on invested capital is a metric used to evaluate a company's effectiveness in allocating its resources to successful...
How to Optimize Capital Structure?
Capital structure is the combination of various forms of external funds, known as capital, used by a company to finance its overall operations and growth. There are several ways to measure the efficiency of the capital structure: ROIC (return on invested capital), ROE...
Capital Asset Pricing Model (CAPM) and its Role in Discounted Cash Flow Analysis (DCF)
Capital asset pricing model or CAPM formula is commonly utilized while investing. It is crucial in determining the weighted average cost of capital (WACC), as CAPM computes the cost of equity. WACC is used extensively in financial modelling. It can be used to find the...