FMP
Our Blogs
Jul 25, 2024 4:22 AM - Parth Sanghvi
Enterprise Value (EV) vs. Market Capitalization: Key Differences and When to Use Each
<h1>Enterprise Value (EV) vs. Market Capitalization: Key Differences and When to Use Each</h1> <h2>Introduction</h2> When evaluating companies for investment purposes, two important metrics often come into play: Enterprise Value (EV) and Market Capitalization. While both are used to measure a ...
Jul 25, 2024 4:21 AM - Parth Sanghvi
Cash Flow Based Valuation Metrics: Understanding EV/FCFF and FCFF Yield
<h1>Cash Flow Based Valuation Metrics: Understanding EV/FCFF and FCFF Yield</h1> <h2>Introduction to Cash Flow Based Valuation</h2> In the world of financial analysis, cash flow based valuation metrics play a crucial role in assessing a company's true value. Among these, Enterprise Value to Fr...
Jul 25, 2024 4:20 AM - Parth Sanghvi
Free Cash Flow and Investment Decisions: How FCFF Informs Capital Allocation
<h1>Free Cash Flow and Investment Decisions: How FCFF Informs Capital Allocation</h1> <h2>Introduction to Free Cash Flow and Capital Allocation</h2> In the complex world of corporate finance, Free Cash Flow to Firm (FCFF) stands as a crucial metric that significantly influences investment deci...
Jul 25, 2024 4:19 AM - Parth Sanghvi
Capital Structure and Cost of Capital: Understanding the Impact of Debt on WACC
<h1>Capital Structure and Cost of Capital: Understanding the Impact of Debt on WACC</h1> <h2>Introduction to Capital Structure and Cost of Capital</h2> In the realm of corporate finance, few concepts are as crucial as capital structure and cost of capital. These interrelated ideas play a pivot...
Jul 25, 2024 4:18 AM - Parth Sanghvi
Cost of Equity Calculation: Exploring Different Models and Their Assumptions
<h1>Cost of Equity Calculation: Exploring Different Models and Their Assumptions</h1> <h2>Introduction to Cost of Equity</h2> The cost of equity is a critical component in corporate finance, representing the return that shareholders require for investing in a company. Accurately estimating thi...
Jul 25, 2024 4:16 AM - Parth Sanghvi
Real Options Analysis: Incorporating Flexibility and Optionality into Valuation
<h1>Real Options Analysis: Incorporating Flexibility and Optionality into Valuation</h1> <h2>Introduction to Real Options Analysis</h2> In the dynamic world of finance and investment, traditional valuation methods often fall short when it comes to capturing the full value of strategic flexibil...
Jul 25, 2024 4:06 AM - Parth Sanghvi
Cash Conversion Cycle: Understanding and Improving Cash Flow Efficiency
<h1>Cash Conversion Cycle: Understanding and Improving Cash Flow Efficiency</h1> <h2>Introduction to the Cash Conversion Cycle</h2> In the world of business finance, few metrics are as crucial yet often overlooked as the Cash Conversion Cycle (CCC). This powerful tool provides invaluable insig...
Jul 25, 2024 4:00 AM - Parth Sanghvi
Energy Valuation: Valuing Oil and Gas Companies Considering Reserves and Commodity Prices
<h1>Energy Valuation: Valuing Oil and Gas Companies Considering Reserves and Commodity Prices</h1> <h2>Introduction to Energy Valuation</h2> Valuing oil and gas companies presents unique challenges due to the volatile nature of commodity prices and the complexities of reserve estimation. This ...
Jul 25, 2024 3:59 AM - Parth Sanghvi
Dividend Discount Model (DDM): Calculating Intrinsic Value Based on Dividends
<h1>Dividend Discount Model (DDM): Calculating Intrinsic Value Based on Dividends</h1> <h2>Introduction to the Dividend Discount Model</h2> In the realm of equity valuation, the Dividend Discount Model (DDM) stands out as a fundamental approach to determining the intrinsic value of a stock. Th...
Jul 24, 2024 3:52 AM - Parth Sanghvi
Understanding Stock Options: A Beginner's Guide to Options Trading
<h1>Understanding Stock Options: A Beginner's Guide to Options Trading</h1> Options trading can seem complex at first, but with a solid grasp of the basics, it can become a powerful tool in your investment arsenal. In this guide, we'll explore key options terminology and show you how to access va...
Jul 24, 2024 3:47 AM - Parth Sanghvi
Using Machine Learning for Stock Market Prediction: Possibilities and Limitations
<h1>Using Machine Learning for Stock Market Prediction: Possibilities and Limitations</h1> The intersection of machine learning (ML) and finance has opened up new frontiers in stock market prediction. This article explores the potential and challenges of applying AI to investing, with a focus on ...
Jul 24, 2024 3:45 AM - Parth Sanghvi
Investing with Fractional Shares: Democratizing Access to High-Value Stocks
<h1>Investing with Fractional Shares: Democratizing Access to High-Value Stocks</h1> Fractional share investing has revolutionized the way individuals can participate in the stock market. This innovative approach allows investors to purchase portions of shares, making high-priced stocks more acce...
Jul 24, 2024 3:44 AM - Parth Sanghvi
Common Investing Mistakes and How to Avoid Them: Leveraging Financial Data for Smarter Decisions
<h1>Common Investing Mistakes and How to Avoid Them: Leveraging Financial Data for Smarter Decisions</h1> Even seasoned investors can fall prey to common pitfalls that erode returns and derail financial goals. In this article, we'll explore frequent investing mistakes and demonstrate how leveragi...
Jul 24, 2024 3:43 AM - Parth Sanghvi
Investing for Beginners: A Step-by-Step Guide to Building Your First Portfolio
<h1>Investing for Beginners: A Step-by-Step Guide to Building Your First Portfolio</h1> Embarking on your investment journey can seem daunting, but with the right approach and tools, anyone can start building wealth through investing. This comprehensive guide will walk you through the process of ...
Jul 24, 2024 3:42 AM - Parth Sanghvi
Dividend Investing for Income Generation: Strategies and Analysis Using Financial Data
<h1>Dividend Investing for Income Generation: Strategies and Analysis Using Financial Data</h1> Dividend investing has long been a popular strategy for investors seeking steady income streams and long-term wealth accumulation. This article explores effective dividend investing strategies and demo...
Jul 24, 2024 3:40 AM - Parth Sanghvi
The Psychology of Money: How Your Biases Impact Your Investment Decisions
<h1>The Psychology of Money: How Your Biases Impact Your Investment Decisions</h1> Understanding the psychology behind our financial decisions is crucial for successful investing. Our emotions and cognitive biases can significantly influence our investment choices, often leading to suboptimal out...
Jul 24, 2024 3:38 AM - Parth Sanghvi
Building a Recession-Proof Portfolio: Strategies for Market Downturns
<h1>Building a Recession-Proof Portfolio: Strategies for Market Downturns</h1> In an ever-changing economic landscape, constructing a portfolio that can withstand market downturns is crucial for long-term investment success. This article explores strategies for building a recession-resistant port...
Jul 24, 2024 3:37 AM - Parth Sanghvi
High-Frequency Trading: Understanding HFT Strategies and their Impact on Markets
<h1>High-Frequency Trading: Understanding HFT Strategies and their Impact on Markets</h1> High-Frequency Trading (HFT) has revolutionized financial markets, introducing unprecedented speed and complexity to trading activities. This article delves into the world of HFT, exploring its strategies, t...
Jul 17, 2024 3:37 AM - Parth Sanghvi
Short Selling: A Controversial Strategy Explained
Short Selling: A Controversial Strategy Explained Short selling is a complex and often misunderstood investment strategy that allows traders to profit from a decline in a stock's price. While it can be a powerful tool for experienced investors, it's also surrounded by controversy and subject to s...
Jul 17, 2024 3:36 AM - Parth Sanghvi
The Role of Central Banks in a Volatile Market Environment
The Role of Central Banks in a Volatile Market Environment In today's interconnected global economy, central banks play a pivotal role in shaping financial markets and economic conditions. As investors navigate increasingly volatile markets, understanding the actions and influence of central bank...
