Dividend Discount Model Formula Dividend Discount Model Variations Dividend Discount Model Examples Dividend Discount Model Shortcomings What is a two stage DDM? A two stage DDM is a type of model used to value a stock. The model takes into account two factors: the dividend paid by the stock and the growth rate of the … Read more
Mosaic theory is a tool used by fundamental analysts to help them better understand a company and its share price. By looking at a company’s financials, analysts can build a “mosaic” of the company, which can help them identify trends and predict future performance. Mosaic theory is based on the idea that a company is … Read more
What You Need to Know About Factor Investing What are the main types of charts used in technical analysis? There are many types of charts used in technical analysis, but the three most common are bar charts, candlestick charts, and line charts. Bar charts show the opening and closing price, as well as the high … Read more
Nominal value is defined as the stated value of a security, without taking into account any adjustments for inflation or other economic factors. For example, the nominal value of a bond may be $1,000, but its real value may be less than that if inflation increases over the life of the bond. Similarly, the nominal … Read more
Probability theory is the branch of mathematics that deals with the analysis of random phenomena. The central idea of probability theory is that of a probability space, which is a mathematical model of a random process. A probability space consists of a set of possible outcomes, called the sample space, and a set of probabilities … Read more
Conditional Value at Risk (CVar): Definition, Uses, Formula. Is CTE a risk metric? CTE is a risk metric, but it is not the only risk metric. CTE can be used to measure the risk of a portfolio, but it is not the only metric that can be used. There are other risk metrics, such as … Read more
What Is Capital Reduction? Capital reduction is a process whereby a company reduces its share capital. This may be done by cancelling shares, repurchasing shares, or by some other means. Why Would a Company Reduce Its Share Capital? There are several reasons why a company might want to reduce its share capital. For example, it … Read more
An investment view is a fundamental analysis tool used by investors to make informed investment decisions. It is based on an analysis of a company’s financial statements and other publicly available information, and reflects an investor’s assessment of a company’s long-term prospects. An investment view takes into account a variety of factors, including a company’s … Read more
The Graham Number is a number that was developed by famed investor Benjamin Graham. It is a measurement of a stock’s fair value that takes into account both the company’s earnings and its book value. The Graham Number is calculated by taking the square root of the company’s earnings per share multiplied by the book … Read more
Cash Flow Return on Investment (CFROI) is a measure of a company’s financial performance. It is calculated by taking the company’s after-tax cash flow from operations and divided by the company’s total investment. The CFROI ratio is used to evaluate a company’s ability to generate cash flow and return on investment. A higher CFROI ratio … Read more
