Comprehensive Guide to Financial Statement Analysis / Ratio Analysis

Comprehensive Guide to Financial Statement Analysis / Ratio Analysis

This is the most comprehensive guide to Ratio Analysis / Financial Statement Analysis This expert-written guide goes beyond the usual gibberish and explore practical Financial Statement Analysis as used by Investment Bankers and Equity Research Analysts. Here I have taken Colgate case study and calculated Ratios in excel from scratch. Please note that this Ratio Analysis guide is over 9000…

Sensitivity Analysis in Excel with Finance Examples

Sensitivity Analysis in Excel with Finance Examples

Sensitivity analysis helps us study the uncertainty in the output of the model with the changes in the input variables. It primarily does stress testing of our modeled assumptions and leads to value added insights. In the context of DCF valuation, Sensitivity Analysis in excel is especially useful in finance for modeling share price or valuation sensitivity to assumptions like…

Treasury Stock Method – Complete Beginner’s Guide!

Treasury Stock Method - Complete Beginner's Guide!

Employee Stock Options are complex call options granted by the companies as a part of the remuneration package. When stock options are exercised in large quantitites, it can have a significant impact on the total number of outstanding shares thereby diluting the EPS and negatively affecting the valuations of the firm. To comply with GAAP, the dilutive impact of…

Industry Analysis – Compete Beginner’s Guide

Industry Analysis - Compete Beginner's Guide

Industry analysis is one of the primary tasks of equity research analysts. In some companies there’re dedicated teams who primarily do industry analyses and write reports on the same. In simple terms, industry analysis reveals the dynamics of the industry to the stakeholders. So it’s an essential part of creating competitive advantage for a company in…

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