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Chepakovich Valuation Model
The Chepakovich valuation model is a specialized discounted cash flow Valuation (finance), valuation model, originally designed for the valuation of “growth stocks” (ordinary/common shares of companies experiencing high revenue growth rates), and subsequently applied to the Valuation (finance)#Valuation of a startup company, valuation of high-tech companies - even those that are (currently) Profit (accounting), unprofitable. Relatedly, it is a general valuation model and can also be applied to no-growth or negative growth companies. In fact, in the limiting case (mathematics), limiting case of no growth in revenues, the model yields similar (but not identical) results to a regular Free cash flow to equity, discounted cash flow to equity model. The model was developed by Alexander Chepakovich in 2000 and enhanced in subsequent years. Features and assumptions The key distinguishing feature of the Chepakovich valuation model is separate forecasting of fixed (or quasi-fixed) an ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Discounted Cash Flow
The discounted cash flow (DCF) analysis is a method in finance of valuing a security, project, company, or asset using the concepts of the time value of money. Discounted cash flow analysis is widely used in investment finance, real estate development, corporate financial management and patent valuation. It was used in industry as early as the 1700s or 1800s, widely discussed in financial economics in the 1960s, and became widely used in U.S. courts in the 1980s and 1990s. Application To apply the method, all future cash flows are estimated and discounted by using cost of capital to give their present values (PVs). The sum of all future cash flows, both incoming and outgoing, is the net present value (NPV), which is taken as the value of the cash flows in question; see aside. For further context see valuation overview; and for the mechanics see valuation using discounted cash flows, which includes modifications typical for startups, private equity and venture capital, co ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Valuation (finance)
In finance, valuation is the process of determining the present value (PV) of an asset. In a business context, it is often the hypothetical price that a third party would pay for a given asset. Valuations can be done on assets (for example, investments in marketable securities such as companies' shares and related rights, business enterprises, or intangible assets such as patents, data and trademarks) or on liabilities (e.g., bonds issued by a company). Valuations are needed for many reasons such as investment analysis, capital budgeting, merger and acquisition transactions, financial reporting, taxable events to determine the proper tax liability. Valuation overview Common terms for the value of an asset or liability are market value, fair value, and Intrinsic value (finance), intrinsic value. The meanings of these terms differ. For instance, when an analyst believes a stock's intrinsic value is greater (or less) than its market price, an analyst makes a "buy" (or "sell") reco ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Growth Stock
In finance, a growth stock is a stock of a company that generates substantial and sustainable positive cash flow and whose revenues and earnings are expected to increase at a faster rate than the average company within the same industry. A growth company typically has some sort of competitive advantage (a new product, a breakthrough patent, overseas expansion) that allows it to fend off competitors. Growth stocks usually pay smaller dividends, as the companies typically reinvest most retained earnings in capital-intensive projects. Criteria Analysts compute return on equity (ROE) by dividing a company's net income into average common equity. To be classified as a growth stock, analysts generally expect companies to achieve a 15 percent or higher return on equity. CAN SLIM is a method which identifies growth stocks and was created by William O'Neil a stock broker and publisher of ''Investor's Business Daily''. In academic finance, the Fama–French three-factor model relies on book ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Profit (accounting)
Profit, in accounting, is an income distributed to the ownership , owner in a Profit (economics) , profitable market production process (business). Profit is a measure of profitability which is the owner's major interest in the income-formation process of market production. There are several profit measures in common use. Income formation in market production is always a balance between income generation and income distribution. The income generated is always distributed to the Stakeholder (corporate), stakeholders of production as economic value within the review period. The profit is the share of income formation the owner is able to keep to themselves in the income distribution process. Profit is one of the major sources of economics , economic well-being because it means incomes and opportunities to develop production. The words "income", "profit" and "earnings" are synonyms in this context. Measurement of profit There are several important profit measures in common use. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Limiting Case (mathematics)
In mathematics, a limiting case of a mathematical object is a special case that arises when one or more components of the object take on their most extreme possible values. For example: * In statistics, the limiting case of the binomial distribution is the Poisson distribution. As the number of events tends to infinity in the binomial distribution, the random variable changes from the binomial to the Poisson distribution. *A circle is a limiting case of various other figures, including the Cartesian oval, the ellipse, the superellipse, and the Cassini oval. Each type of figure is a circle for certain values of the defining parameters, and the generic figure appears more like a circle as the limiting values are approached. *Archimedes calculated an approximate value of π by treating the circle as the limiting case of a regular polygon with 3 × 2''n'' sides, as ''n'' gets large. *In electricity and magnetism, the long wavelength limit is the limiting case when the wavelength is ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Free Cash Flow To Equity
In corporate finance, free cash flow to equity (FCFE) is a metric of how much cash can be distributed to the equity shareholders of the company as dividends or stock buybacks—after all expenses, reinvestments, and debt repayments are taken care of. It is also referred to as the levered free cash flow or the flow to equity (FTE). Whereas dividends are the cash flows actually paid to shareholders, the FCFE is the cash flow simply available to shareholders. The FCFE is usually calculated as a part of DCF or LBO modelling and valuation. Basic formulae Assuming there is no preferred stock outstanding: : FCFE = FCFF + Net\ Borrowing - Interest*(1-t) where: * ''FCFF'' is the free cash flow to firm; * ''Net Borrowing'' is the difference between debt principals paid and raised; * ''Interest*(1–t)'' is the firm's after-tax interest expense. or : FCFE = NI + D\& A - Capex - \Delta WC + Net\ Borrowing or : FCFE = NI - 1-b) (Capex-D\& A) + (1-b) (\Delta WC) where: * ''NI'' is the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Alexander Chepakovich
Alexander Chepakovich is a web developer, engineer, entrepreneur and finance practitioner. He is the founder of X-FIN.com. During his career Chepakovich worked at Gomel Power Plant 2, General Electric Company, Alstom, Bank of Canada, ABN Amro Bank, Commerzbank, and Edward Jones. In finance, Chepakovich is author of the Chepakovich valuation model. In engineering, he has done an original research study on single- and two-phase transient jets created by diesel engine injectors. This was part of a work undertaken by a team of graduate students and research engineers led by Professor Philip Hill at the University of British Columbia's Department of Mechanical Engineering, which become the basis of Westport HD technology used by Westport Innovations Westport Innovations (, ) is a company that develops alternative fuel, low-emissions technologies to allow engines to operate on clean-burning fuels such as compressed natural gas (CNG), liquefied natural gas (LNG), hydrogen and biof ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Chepakovich Valuation Model
The Chepakovich valuation model is a specialized discounted cash flow Valuation (finance), valuation model, originally designed for the valuation of “growth stocks” (ordinary/common shares of companies experiencing high revenue growth rates), and subsequently applied to the Valuation (finance)#Valuation of a startup company, valuation of high-tech companies - even those that are (currently) Profit (accounting), unprofitable. Relatedly, it is a general valuation model and can also be applied to no-growth or negative growth companies. In fact, in the limiting case (mathematics), limiting case of no growth in revenues, the model yields similar (but not identical) results to a regular Free cash flow to equity, discounted cash flow to equity model. The model was developed by Alexander Chepakovich in 2000 and enhanced in subsequent years. Features and assumptions The key distinguishing feature of the Chepakovich valuation model is separate forecasting of fixed (or quasi-fixed) an ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Expenses
An expense is an item requiring an outflow of money, or any form of fortune in general, to another person or group as payment for an item, service, or other category of costs. For a tenant, rent is an expense. For students or parents, tuition is an expense. Buying food, clothing, furniture, or an automobile is often referred to as an expense. An expense is a cost that is "paid" or " remitted", usually in exchange for something of value. Something that seems to cost a great deal is "expensive". Something that seems to cost little is "inexpensive". "Expenses of the table" are expenses for dining, refreshments, a feast, etc. In accounting, ''expense'' is any specific outflow of cash or other valuable assets from a person or company to another person or company. This outflow is generally one side of a trade for products or services that have equal or better current or future value to the buyer than to the seller. Technically, an expense is an event in which a proprietary stake is dimi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Inflation
In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money. The opposite of inflation is deflation, a sustained decrease in the general price level of goods and services. The common measure of inflation is the inflation rate, the annualized percentage change in a general price index. As prices do not all increase at the same rate, the consumer price index (CPI) is often used for this purpose. The employment cost index is also used for wages in the United States. Most economists agree that high levels of inflation as well as hyperinflation—which have severely disruptive effects on the real economy—are caused by persistent excessive growth in the money supply. Views on low to moderate rates of inflation are more varied. Low or moderate inflation may be attri ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Variable Discount Rate
{{Disambiguation ...
Variable may refer to: * Variable (computer science), a symbolic name associated with a value and whose associated value may be changed * Variable (mathematics), a symbol that represents a quantity in a mathematical expression, as used in many sciences * Variable (research), a logical set of attributes * Variable star, a type of astronomical star * "The Variable", an episode of the television series ''Lost'' See also * Variability (other) Variability is how spread out or closely clustered a set of data is. Variability may refer to: Biology *Genetic variability, a measure of the tendency of individual genotypes in a population to vary from one another *Heart rate variability, a phy ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cash Flow
A cash flow is a real or virtual movement of money: *a cash flow in its narrow sense is a payment (in a currency), especially from one central bank account to another; the term 'cash flow' is mostly used to describe payments that are expected to happen in the future, are thus uncertain and therefore need to be forecast with cash flows; *a cash flow is determined by its time ''t'', nominal amount ''N'', currency ''CCY'' and account ''A''; symbolically ''CF'' = ''CF''(''t,N,CCY,A''). * it is however popular to use ''cash flow'' in a less specified sense describing (symbolic) payments into or out of a business, project, or financial product. Cash flows are narrowly interconnected with the concepts of value, ''interest rate'' and liquidity. A cash flow that shall happen on a future day ''t''N can be transformed into a cash flow of the same value in ''t''0. Cash flow analysis Cash flows are often transformed into measures that give information e.g. on a company's value and situat ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
