Calculating Cost of Equity with the Capital Asset Pricing Model (CAPM)

I recently wrote an article on the Art and Science of Valuation. There's several components to it so I wanted to break down how to calculate a company's Cost of Equity. Why would you want to know Cost of Equity? Because the cost of equity is used to discount a company's future cash flow into … Continue reading Calculating Cost of Equity with the Capital Asset Pricing Model (CAPM)

The Art and Science of Stock Valuation

In Finance 101, the first thing that you learn about is the "Time Value of Money". Essentially, it means that a dollar today is worth more than a dollar tomorrow. The rest of the course of Finance 101 is to determine how to value different types of securities. Let's do a quick overview into valuing … Continue reading The Art and Science of Stock Valuation