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What is Beta

What is beta, levered beta and unlevered beta? Beta is a measure of the systematic risk associated with investing in a particular asset or security. It indicates how sensitive an investment's returns are to the overall fluctuations in the market. Beta is an important concept in corporate finance and investment analysis as it

By |2024-04-05T13:58:32+00:00March 14th, 2024|Uncategorized|Comments Off on What is Beta

What is CAPEX and OPEX?

What is CAPEX and OPEX? Capital expenditures (CAPEX) and operating expenses (OPEX) are two important items from a company’s cash flow and income statement (respectively). They are both key financial metrics that companies use to budget, forecast, and analyse their spending. Understanding the difference between CAPEX and OPEX is especially important for making

By |2024-04-05T13:58:43+00:00February 19th, 2024|Uncategorized|Comments Off on What is CAPEX and OPEX?

Perpetuities: Definitions, Concepts and Examples

Perpetuities: Definitions, Concepts and Examples Perpetuities are an important concept in corporate finance and investment analysis. A perpetuity is a constant stream of cash flows that continues indefinitely into the future. Understanding perpetuities allows financial analysts to properly value assets and investment opportunities that involve long-term, ongoing cash flows. They are one the

By |2024-04-05T13:58:56+00:00February 16th, 2024|Uncategorized|Comments Off on Perpetuities: Definitions, Concepts and Examples

Discount Rate Guide: Definitions, Formulas, Examples

Discount Rate Guide: Definitions, Formulas, Examples The discount rate is a crucial concept in corporate finance and investment appraisal. It is used to determine the net present value (NPV) of future cash flows thus accounting for the time value of money and enabling the comparison of projects and investments with cash flows spread

By |2024-04-05T13:59:55+00:00February 16th, 2024|Uncategorized|Comments Off on Discount Rate Guide: Definitions, Formulas, Examples

Liquidity Ratios Guide: Types, Formulas and Examples

Liquidity Ratios Guide: Types, Formulas and Examples Liquidity ratios are an important set of financial metrics used to analyse a company's ability to cover its short-term obligations. Companies fail not due to lack of profits in most cases, but due to their inability to meet their short-term cash requirements – i.e. they fail

By |2024-04-05T13:59:56+00:00February 5th, 2024|Uncategorized|Comments Off on Liquidity Ratios Guide: Types, Formulas and Examples

Time Value of Money (TVM): Examples, Relevant Formulas and Interpretation

Time Value of Money (TVM): Examples, Relevant Formulas and Interpretation Time Value of Money (TVM) is a core corporate finance concept that refers to the principle that money available now is worth more than the same amount in the future, due to its potential earning capacity today. The TVM concept underlies all calculations

By |2024-04-05T13:59:56+00:00February 5th, 2024|Uncategorized|Comments Off on Time Value of Money (TVM): Examples, Relevant Formulas and Interpretation

Net Present Value (NPV) Explained: Definitions, Formula and Examples

Net Present Value (NPV) Explained: Definitions, Formula and Examples Net present value (NPV) is a core concept in corporate finance and investment analysis. It is a project / investments appraisal technique that is considered to be fundamentally the most robust, and consistent with the concept of enhancing shareholder value in investment appraisal.  By

By |2024-04-05T14:00:16+00:00January 30th, 2024|Project Finance, Uncategorized|Comments Off on Net Present Value (NPV) Explained: Definitions, Formula and Examples

Bond Duration Guide: Definitions, Concepts and Examples

Bond Duration Guide: Definitions, Concepts and Examples Bond duration is a key concept in investment management and corporate finance that allows investors and financial professionals to measure the sensitivity of a bond's price to changes in interest rates. Understanding duration is crucial for assessing the amount of risk associated with a bond investment

By |2024-04-05T14:05:03+00:00January 24th, 2024|Uncategorized|Comments Off on Bond Duration Guide: Definitions, Concepts and Examples

Gearing Ratio Explained: Definitions, Formulas, and Examples

Gearing Ratio Explained: Definitions, Formulas, and Examples  Gearing ratio is an important financial metric that measures the level of debt used to finance a company’s assets and operations relative to equity. The gearing ratio gives insight into a company’s financial leverage and helps evaluate its financial risk.  It doesn’t have an agreed textbook

By |2024-04-05T14:05:14+00:00January 3rd, 2024|Uncategorized|Comments Off on Gearing Ratio Explained: Definitions, Formulas, and Examples

Basis Points (BPS) Explained: Definitions and Examples

Basis points (BPS) is the common term for 1/100th of 1 percent or 0.01%.  This unit might not seem worth naming, but in bond markets for example, this is the unit for measuring daily price movements and credit spreads – i.e. the interest rate premium charged to a company because it is a weaker credit

By |2023-12-05T13:41:42+00:00October 23rd, 2023|Investing, Uncategorized|Comments Off on Basis Points (BPS) Explained: Definitions and Examples
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