When someone mentions the word discount rate, you often think of the Federal Reserve Discount Rate, Federal Funds Rate, Expected...
Category: Business Valuations
Companies create value when an investment in a business yields returns in future cash flow. Generally, when return on invested...
Theory of The Firm
November 2019
The one question that is often asked of me is what makes a firm successful, why do some firms flourish,...
Hamada’s Equation
January 2019
Hamada’s equation is very important in finance and was invented by and named after Robert Hamada. The formula is used...
Exit Multiples in Business Valuation
October 2018
When valuing a company, exit multiples are very important. Typically, we use exit multiples as a sanity check. For example,...