Bond and share formulas are designed for the valuation of securities such as bonds and dividend paying shares.
Firm Valuation formulas allow investors to assess and evaluate the financial position of a firm. Formulas in this section are designed for calculating levered values of beta and FCFF, as well as Weighted Average Cost of Capital (WACC) in various tax systems.
The Weighted Average Cost of Capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The Classical Tax System calculates the WACC by including the tax rate but ignoring the imputation of a franking credit.Read More
The Weighted Average Cost of Capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The Imputation Tax System calculates the WACC by including the tax rate as well as the imputation of a franking credit.Read More
Gordon Growth Models are valuation methods that calculate a security's intrinsic value with consideration to growth rates. Gordon Growth Models are also often referred to as Dividend Discount Models, though they also calculate Free Cashflow to Equity and Firm as well as dividends.
Portfolio and Equity formulas are valuation methods for the calculation of intrinsic value of equity in the case of firms or values of collections of securities such as portfolios.
Formulas for project valuation focus primarily on evaluation of value of projects to investors and managers when considering the viability of projects or investments. This menu includes most common project valuation methods such as the Payback Period, Accounting Rate of Return, and Net Present Value.
Relative valuation, also called valuation, use multiples as the notion of comparing the price of an asset to the market value of similar assets. In the field of securities investment, the idea has led to important practical tools, which could presumably spot pricing anomalies.
The time value of money is a basic financial concept that holds that money in the present is worth more than the same sum of money to be received in the future. As such, formulas in this category are designed to calculate the present value of income from future values with the inclusion of interest.