Tag Archives: valuation

How to analyze a stock

INVESTMENT FRAMEWORK Industry Study Is this a good business? What are the key success factors to superior performance in this industry?  (Value Added Research “VAR”) Define the market opportunity.  How do competitive products address this opportunity? What are the barriers to entry (“moats”)? (VAR!) What is the relative power of: (VAR) Customers Suppliers Competitors Regulators… Read More »

Valuation of a mining company

Imagine you want to value a gold mining company “GOLDY Explorers”, which has 25 million ounces in resource estimates and 5 million ounces in reserves. How would you value GOLDY Explorers? The answer lies in the question itself, since what you actually want to value are the 30 million ounces in resource/reserves. However, you cannot… Read More »

When to use NPV, IRR or MIRR

What is Capital Budgeting? Capital budgeting is the process of allocating capital after determining project feasibility. Determining project feasibility is a 3 part process: Step 1] Qualitative Analysis – Relationship/Branding feasibility, Socio-Cultural & Political feasibility Step 2] Forecasting Performance – Financial Modeling & Structural analysis (Most critical!) Step 3] Quantitative Analysis –IRR (or MIRR), NPV, Payback… Read More »