Fundamentals

How to Calculate WACC

January 21, 2013

Weighted Average Cost of Capital (WACC) is defined as the minimum return that a company must generate to satisfy its owners, creditors, and other providers of capital or else it would make more sense for them to invest elsewhere. Since there…

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Valuation

DCF: Discounted Cash Flow Analysis

January 18, 2013

While there are many ways to determine the intrinsic value of a company, I don’t believe any are more popular than the DCF — or Discounted Cash Flow method of analysis. It’s widely regarded to be the most accurate means…

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Portfolio

Ebix Added to Model Portfolio

January 14, 2013

Yesterday I analyzed Ebix, Inc. (EBIX) in depth and estimated that the company’s current intrinsic value is somewhere in the vicinity of $30.40. The stock has been decimated recently by bad press, some red flags with respect to whether it…

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Valuation

EBIX Analysis & Valuation

January 12, 2013

Ebix Inc. (EBIX) is a supplier of software to the insurance industry. Have you ever applied for insurance and the agent asked you about a million questions, some of which seem like they couldn’t possibly have any effect on your…

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Valuation

Peter Lynch Fair Value

January 9, 2013

I am always on the lookout for new stock valuation techniques. Rather than rely on any single method, it’s usually better to evaluate a potential purchase in multiple ways. With any value calculation there are always assumptions that need to…

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