valuation
A few foundational microeconomic assumptions and a discounted cash flow (DCF) framework can help inform crypto buy and sell decisions.
Unlike traditional assets such as stocks and bonds, bitcoin lacks the typical characteristics required for traditional valuation methods.
If the US government were a normal company, it would have had to declare bankruptcy long ago.
The authors set out the core principles of valuation and offer a guide to measuring a company's value.
An analysis of portfolio concentration and a primer on cryptocurrencies are among the leading posts from Enterprising Investor last month.
Analysts need new tools to evaluate new business models.
The stock market often moves contrary to consensus forecasts, says Mark Armbruster, CFA. In the face of many stock market naysayers, there is a reasonable argument for further gains.
Non-GAAP company performance measures are growing in prominence. Is this a good thing for investors who rely so strongly on accounting numbers for evaluating performance and valuing businesses? A recent CFA Institute webinar explored the issue.
Investors and advisers need to broaden and deepen their levels of analysis to get a better handle on liquidity risks. They may be drawn to the apparent certainty of putting funds into a small number of boxes, buckets, or categories, but this may prove to be a false comfort.
Central bankers in the US have long fixated on the equilibrium real interest rate (ERIR) as their lodestar, an obsession that GMO’s James Montier, in The Idolatry of Interest Rates, bemoans as “a massive exercise in navel gazing.” According to Montier, the broad acceptance of the theoretically dubious ERIR — the real interest rate consistent with full employment of labor and capital resources—is not an example of the wisdom of crowds, but rather “groupthink extraordinaire.” Further, investors’ collective preoccupation with interest rates as an economic “cure-all” and their “deification of central bankers” are equally misguided, says Montier.