Market Momentum Tracker Analysis - 24-06-24 Following our initial blog, we’ve started setting up monthly portfolios. The approach we took was to make it diversified – taking top performers from four different segments to reduce volatility. This presents real problems at the moment as momentum is so concentrated in technology. This feeds through to
Forecasting Methods in Budgeting and Modelling Budgeting and modelling are integral components of financial planning and decision-making processes. Forecasting methods are employed to estimate future revenues, expenses, cash flows, and other financial metrics, enabling organisations to develop realistic budgets and create robust financial models. By accurately projecting future outcomes, businesses can optimise resource
What is Valuation? Capitalism is a system in which private owners control private property and let market forces- supply and demand set prices. To make money in such a system, rational allocation of capital is the only legitimate route to success. Being able to value assets, market opportunities and businesses is therefore a
Capital Asset Pricing Model (CAPM): Definition, Formula, and Examples The Capital Asset Pricing Model (CAPM) i has significantly influenced the way investors evaluate and price assets. Developed in the 1960s by William Sharpe, John Lintner, and Jan Mossin, the CAPM provides a framework for understanding the relationship between risk and expected returns on
Guide to Leveraged Finance (Lev Fin) Leveraged finance, as we know it today, originated in the 1980s as the private equity industry developed and grew. Since then, the range of products and investors has grown and changed, with the most radical development – the rise of “debt funds” or direct lenders- occurring as
Market Momentum Tracker Analysis - 28-05-24 Sector Momentum ranking 1 = sector with most funds in top 100 performers The table shows which category of funds- in this case UK Equity Income- had the largest proportion of funds in the top one hundred performers over the last four weeks. This is “rank 1”.
Weighted Average Cost of Capital (WACC): Formula, Analysis, Examples The Weighted Average Cost of Capital (WACC) is a key component in discounted Cash flow valuation (or “DCF” for short). In a nutshell it is the market-value weighted average AFTER-TAX cost of debt and equity of a company. DCF is one the two most
Momentum Investing and the Market Momentum Tracker At Capital City Training, we’ve been looking into the concept of momentum investing, its history, practice and whether it actually works or not! With momentum investing, the idea is simple: buy what has performed well, then hold it until it stops performing. One the most well-known
Types of Assets in Finance In the world of finance and accounting, assets play a crucial role in determining the financial health and value of an organisation. Assets are the resources controlled by a company and they are usually 100% owned but need not be! There are many different categories of assets -
Debt-to-Equity Ratio: Formula, Analysis and Examples In financial analysis, the debt-to-equity ratio (D/E ratio or “gearing” as it is known in the UK) is an important financial risk metric that provides valuable insights into a company's financial health. This ratio is one of a group used by analysts, and creditors to assess the
