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

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

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

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

Free Cash Flow (FCF): Formula, Analysis, Examples There are numerous metrics and ratios used to evaluate a company's financial performance and prospects. One such metric with significant importance is free cash flow (FCF). It serves as a valuable indicator of a company's ability to generate cash and fund its growth initiatives, pay dividends,

Breakeven Point: Definition, Formula and Analysis In the world of business, profitability is the ultimate goal. Companies strive to generate revenue that exceeds their expenses, allowing them to turn a profit and sustain their operations. Breakeven is exactly what it says it is, but breakeven on what basis? Are we at monthly breakeven

How to Analyse the Balance Sheet The balance sheet is one of the most core financial statements, providing a comprehensive snapshot of a company's financial health at a specific point in time. Analysing a balance sheet requires a systematic approach and a keen eye for detail. By dissecting each component and understanding their

Top 5 Financial KPIs and Metrics to Measure Business Performance Measuring a company's financial performance is vital for business leaders, investors, and other stakeholders. Financial metrics provide insights into the financial health and growth prospects of a business. By regularly tracking key financial performance indicators (KPIs), management can identify areas for improvement, adjust