Tag: value

Compound Annual Growth Rate (CAGR)

See Also: Price Earnings Growth Ratio Analysis Value Drivers: Building Reliable Systems to Sustain the Growth of the Business Income Statement Balance Sheet Cash Flow Statement Compound Annual Growth Rate Definition (CAGR) Definition The compound annual growth rate (CAGR), defined is the proportional growth rate from year to year for a business. It is essentially

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Complementors (Sixth Force of Porter’s Five Forces)

See also: Porter’s Five Forces of Competition Threat of New Entrants Supplier Power Buyer Bargaining Power Threat of Substitutes Intensity of Rivalry Porter’s Sixth Force Definition Complementors, Porter’s sixth force, are companies or entities that sell or offer goods or services that are compatible with, or complementary to, the goods or services produced and sold

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Company Valuation Introduction

See Also: Cost of Capital Capital Asset Pricing Model Common Stock Cash Flow After Tax Discount Rate Why Valuation Matters Valuation Methods Liquidation Valuation Company Valuation Introduction How do you value a company and its equity? How do you calculate a company’s fair value? Have you overvalued or undervalued your company? As we dive into

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Bankruptcy Courts

Bankruptcy Courts Explanation All bankruptcies are filed in bankruptcy courts when they are located in the United States. Bankruptcy Courts are also subunits of U.S. District Courts. In addition, every U.S. District Court has a bankruptcy court. Applicable federal and state laws then determine bankruptcy proceedings. The US Courts website states that, “Bankruptcy helps people

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Asset Market Value vs Asset Book Value

See Also: Accounting Income vs Economic Income Economic Value Added Value Drivers:Building Reliable Systems to Sustain Growth Basis Definition Variance Analysis Goodwill Impairment Asset Market Value versus Asset Book Value Book value and market value are two ways to value an asset. An asset’s book value can differ from its market value. Market value is the

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Arm’s Length Transaction

See Also: Accounting Principles Accounting Concepts Point of Sale (POS) Method Working Capital From Real Estate Which Bank to Choose? Arm’s Length Transaction Definition An arm’s length transaction or the arm’s length principle is a transaction that takes place between two completely unrelated parties. An arm’s length transaction also implies that the final transfer of

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Ad Valorem Tax

See Also: Flat Tax Rates Marginal Tax Rate Tax Brackets Tax Efficiency Internal Revenue Service (IRS) Special Tax Bond Ad Valorem Tax Definition Ad Valorem, which is Latin for “according to value“, refers to the taxes imposed on people usually by local or state municipalities. The two types are ad valorem property taxes and ad

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Agency Costs

See Also: Are You Collecting the Data You Need to Run Your Business? Average Cost Sunk Costs Restructuring Expense Joint Costs Commercial Agents Agency Costs Definition The agency costs definition is the internal costs incurred from asymmetric information or conflicts of interest between principals and agents in an organization. In a corporation, the principals would be

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Does Your Company Have an Advisory Board?

Does your company have an advisory board that meets with senior management on a periodic basis? If you don’t, then why not? This past week I spent 5 hours in a advisory board meeting that we scheduled to last 2.5 hours. We spent that time not because the management asked us to, but because we

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Do You Know Who Your A-List Customers Are?

Do you know who your A-list customers are? I was in a board meeting last week when I heard an interesting story from one of the other board members. Mike recalled when he was a young man and developed an interest in electrical work. While continuing to work at his day job, Mike developed a

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