Tag Archives: debt

Here Is What You Do When You Don’t Understand A Financial Term

When we are looking at financials of a company, we need to look at them like an underwriter who is making sure that money will not be lost on a loan to the company. An underwriter is looking for risk. Risk that the company will not be able to repay. An underwriter knows their stuff.… Read More »

How Do You Value A Company To Buy?

The short answer is discounted present value of future earnings (profits). You can do that in two formulas within a spreadsheet… However, let’s understand it from a basic pretend stock. Acme Widgets earns $5 per share per year. They have earned $5 per share for the past 5 years and are expecting $5 per share… Read More »