Mastering Fundamental Analysis: A Comprehensive Guide to Analyzing Stocks and Investments by Lalit Mohanty by Mohanty Lalit

Author:Mohanty, Lalit
Language: eng
Format: epub
Published: 2023-12-10T00:00:00+00:00

Discount Rate: The discount rate reflects the time value of money and the risk associated with the investment. It often includes the company's cost of equity and debt.

Terminal Value: DCF incorporates a terminal value representing the company's value beyond the explicit forecast period. This is often calculated using the perpetuity growth method or an exit multiple.

7.2 Comparable Company Analysis (CCA)

7.2.1 Concept of CCA

Comparable Company Analysis (CCA), or trading multiples, involves comparing the valuation ratios of a target company to those of similar, publicly traded companies. The key is identifying comparable companies in terms of size, industry, growth prospects, and risk profile.

7.2.2 Key Steps in CCA

Selection of Comparable Companies: Identify a peer group of companies with similar business characteristics.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.