May 112021
 

The process of calculating PV factors or zero coupon rates from the cash yield curve.

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Apr 142021
 

Bottom-up investing is a strategy that overlooks the significance of industry or economic factors and instead focuses on the analyses of individual stocks and companies. The approach assumes that individual companies can perform well in an industry that isn’t doing well. If the company is strong, then macroeconomic concerns are thought to be of relatively little importance. The bottom-up strategy therefore relies on extensive research and analysis of stocks and companies. Some investors look for firms with low p/e ratios and high earnings growth, while others look for financial stability, or seek to become familiar with the company’s products and services.

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Jan 272021
 

Book value is the total value of the net assets of a company attributable to – or owned by – shareholders. It consists of the firm’s fixed assets (buildings, machinery etc.) plus its current assets (those which are constantly on the move such as raw materials, stock, working capital, etc.), minus current (short-term) liabilities, long-term creditors and any provisions. Book value is also known as ‘net tangible assets’, ‘shareholders funds’ or ‘stockholders equity’. Book value divided by the number of shares in issue will give you book value per share. If you then divide the share price by this, you get the price-to-book-value ratio (p/bv).

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