Discounted Cash Flow: Valuing a Business

The Discounted Cash Flow Model, or DCF for short, is one of the best ways to evaluate business performance. Cash flow is an essential part of any business, and with the Discounted Cash Flow model, investors are saying “show me the money!” This article covers the basics of DCF that every investor should know. Introduction … Read more

Time Value of Money

Would you rather have a million dollars today, or in 1 year from now? It might seem obvious that you would take the money today, but why? Isn’t a million dollars a million dollars? The amount of money doesn’t change, but the value, or what that money is worth changes slowly over time. This course … Read more

13 (Financial) Ratios

We delved into the balance sheet, income statement and cash flow statement. Now it’s time to put all these statements together and use financial ratios to analyze whether or not a business is a worthy investment. Going Deeper With Ratios OK, before we begin this final course, congratulations are in order. You’ve made it through … Read more

How to Read a Cash Flow Statement

Ever wonder how business is like country music? Well, in both cases, Cash is King. This course will show you how to read and analyze a cash flow statement…not country music. What’s a Cash Flow Statement? In country music, Johnny Cash is the undisputed master of songs about hurtin’ and healin’ and pullin’ on through. … Read more

Income Statement Example

The income statement summarizes a company’s revenues and expenses. Here’s an income statement example in order to measure a company’s health and the potential of its stock. What’s An Income Statement? To understand why an income statement is important, think of an internet startup that’s run out of the basement of the founder’s parents. Its … Read more