What can you expect from this article? 1. A brief about the book itself- Buffetology. 2. Significance of the EPS and P/E ratios. 3. Rationale behind combing both of these ratios. 4. How to find value stocks with EPS growth? 5. Do it the marketXLS way. Buffetology Mr. Warren Buffett is the most renowned investor … Read more
Peter Lynch screen is a growth investing strategy inspired by the approach of Peter Lynch, who looks for consistently profitable, relatively unknown, low-debt, reasonably priced stocks with high, but not excessive, growth. Peter Lynch wrote: “If you stay half-alert, you can pick the spectacular performers right from your place of business or out of the … Read more
Buffettelogy: Sustainable Growth Strategy Introduction The Buffettology method is a comprehensive investing strategy used by the world-renowned Investor, Warren Buffet, as mentioned by one of her daughters-in-law Mary Buffet along with David Clark in their book, The New Buffettology. This strategy brings together Buffett’s focus on value and business quality. It helps to work out … Read more
What is the Capitalization of Earnings Method? The Capitalization of Earnings Method is an income-oriented approach. This method is used to value a business based on the future estimated benefits, normally using some measure of earnings or cash flows to be generated by the company. These estimated future benefits are then capitalized using an appropriate … Read more
A firm’s Weighted Average Cost of Capital (WACC) represents its blended cost of capital across all sources, including common shares, preferred shares, and debt. The cost of each type of capital is weighted by its percentage of total capital and they are added together. In this article, we will try to understand what is WACC, … Read more
The extent to which earnings are manipulated has long been a question of interest to analysts, regulators, researchers, and other investment professionals. To address this issue, Professor Messod Beneish developed the Beneish M-score model and published it in a paper in June 1999 called The Detection of Earnings Manipulation. Beneish M score is a Mathematical … Read more
Monte Carlo Simulation Excel is an excellent tool for investors when assessing the potential risks associated with the portfolio and asset allocation. This article will discuss what it is, how it is works, how MarketXLS add-in calculates Monte Carlo simulation of your portfolio. The Monte Carlo approach is a computer-based method that uses statistical sampling … Read more
Dividend growth investing has long been the strategy of choice for both new and seasoned investors. Instead of relying on fluctuating share prices and unstable markets to hopefully make a profit, dividend stocks provide a steady, reliable income. Generated by a portfolio of shares in companies with a track record of paying consistent and increasing … Read more
Black Scholes Excel model as described in this article comes along with MarketXLS as a template. Black Scholes Excel model is perhaps the most famous formula in all of the finance. The Black-Scholes Formula is sometimes also called the Black-Scholes-Merton Formula Blacksholes model puts an analytical framework and mathematical model to answer to question on … Read more
Ratio Analysis, also known as Financial Statement Analysis, involves evaluating the financial statements of companies, and comparing those results to similar companies; typically within the same sector or industry. Because ratios are most useful when compared to other ratios, and it is important to compare relevant ratios. Example; Ratio Analysis would not be useful in … Read more
