• Financial Needs of Small Businesses (2016)

    The 2016 Small Business Credit Survey published in 2017 shows: Most firms are optimistic about the future, expressing expectations for 2017 similar to those they held for 2016; a net 61% expect revenues to grow and a net 39% anticipate job growth...
  • The Finance of Star Wars

    The Star Wars has been a tremendous success, not unlike franchises such as the James Bond franchise and others. According to the video below by Professor Aswath Damodaran, what makes Star Wars different is the value of add-ons such as toys and collectibles...
  • Art Vault

    The value of an investment can be determined several different ways: Comparing the investment with similar investments that have recently changed hands Determining what it would cost to replace the item Adding up the costs of all the components...
  • The Value of Human Capital

    This infographics shows the value of human capital by explaining how long it takes to earn $1 million by education level. Of course, these numbers are averages. An entrepreneur with a high school diploma can become a multi-millionaire while someone with...
  • NPV of a College Degree

    College is an investment of time as well as money, and families should consider the return on that investment as they weigh the options. Weighing any investment requires considering the following: 1. What is the initial investment cost? Are there ongoing...
  • The Wal-Mart Financial Picture

    When we determine the value of a share of stock, we need to consider the ability of the firm to generate positive cash flow. Consider Wal-Mart, for example. The stock is currently trading at a price of 86.62 per share and the trend over the last five...
  • Investing Long Term Rather than Focusing on Short Term Changes

    In this video interview, legendary investor Warren Buffett talks about the principles of investing for the long term rather than watching daily, short-term valuations. He also discusses the impact of negative rates and how these rates distort everything...
  • What is Risk?

    In this video, Peter Bernstein explains that risk means "more things can happen than will happen." It doesn't necessarily mean we're in danger, just that we're facing uncertainty. In finance, many people define risk as the probability...
  • Will Walgreens Buy RiteAid?

    Walgreens' plan to buy RiteAid was canceled in June of this year. But now we see that they are taking another stab at the merger. From TheStreet.com : Walgreens Boots Alliance Inc. ( WBA ) and Rite Aid Corp. ( RAD ) are still hoping to avoid...
  • How to Value a Masterpiece

    Experts tell us that to figure out the value of fine art, the investor must take the following steps: Examine the physical condition of the work to find any tears or damage Authenticate by looking for the artist's signature Compare the piece...
  • Do You Need a College Degree

    We've all heard the arguments. Who needs a college degree when some of the most successful people in the world never graduated? While that is true, and some super successful people dropped out of school, that's not a ticket to success. From...
  • What are Capital Gains

    Capital Gains are the profit on the sale of an asset that you own. The infographic below explains capital gains in more detail: Filed at Infographicsposters.com in Business Infographics
  • Investing in Pizza

    Dominoes changed it's formula in 2009. Since then, the company has outperformed the market and has proven to be a great investment. You will find more statistics at Statista So what makes a good investment, anyway? How would you choose the...
  • Much Anticipated Snap IPO

    From a recent NPR article by Selyukh : When a 2014 Forbes cover featured a grinning cofounder of Snapchat, the accompanying text described CEO Evan Spiegel as "the 23-year-old who told Zuckerberg to take his $3 billion and shove it." Snapchat...
  • Value of Chipotle

    Restaurants are facing a recession as consumers eat out less and eat at home more. From MarketWatch ( Garcia and Linnane, 8 Nov 2016 ): Restaurant companies should brace for a challenging period as consumers grapple with the rising costs of rent, prescriptions...
  • Amazon Valuation

    When you are trying to put a value on the stock, what do you look at? The analyst interviewed here uses EBITDA multiples to determine what the stock is worth. For discussion: What factors does the analyst interviewed here focus on to determine the...
  • The Snapchat IPO Valued at $25 Billion

    Snapchat, the tech messaging platform started by a group of Stanford students, is said to be worth $25 billion, the third largest of the former tech unicorns. Alibaba still holds 1st place at $167 billion and Facebook comes in second with $104 billion...
  • Modigliani & MIller Revisited

    Modigliani and Miller proposed that the value of the firm is independent of how the firm chooses to finance its assets. This infographic from GraduateTutor.com shows the Modigliani & Miller (aka M&M) theory Source: GraduateTutor.com
  • A Bidder for Twitter

    Though Twitter hasn't received any bids yet, the potential acquisition is all the buzz online. From a recent Bloomberg article ( Frier, 25 Sep 2016 ): Salesforce.com Inc. and other companies eyeing Twitter Inc. may pay more than $16 billion to get...
  • Discounted Cash Flow Valuation

    Finance answers the basic question, "What is something worth?" The something can be a house, an antique, a business, or a stock or bond. The infographics below describes the tools we use in finance to identify the value of an asset. If you read...
  • NPV of a Career Decision

    For a new product line, we estimate the cash inflows and determine whether they cover the cash outflows. If we are deciding whether to acquire a target company, we create pro forma financial statements and evaluate whether the new company will provide...
  • Investment in the Olympics

    With the Rio 2016 Olympics over, several news sources are trying to answer this question: Was hosting the Olympic games worth the cost of investment? According to a recent article from Texas A & M University : “Politicians tend to advertise...
  • Top 10 Most Valuable Brands

    According to this CNN Money article , the top 10 most valuable brands are: 1. Google 2. Apple 3. Microsoft 4. AT&T 5. Facebook 6. Visa 7. Amazon 8. Verizon 9. McDonald's 10. IBM Brand value and firm value (also...
  • Why Capex Matters

    Capital expenditures or CapEx is an indicator of companies' willingness to invest in long-term projects. The video from Goldman Sachs above describes why we are currently in a low CapEx environment. According to Gandevani ( Seeking Alpha, 2 June...