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	<title>Financial Modeling Guide &#187; Valuation Concepts</title>
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		<title>Financial Valuation Concepts &#8211; Discounted Cash Flow</title>
		<link>http://www.financialmodelingguide.com/valuation-concepts/discounted-cash-flow/</link>
		<comments>http://www.financialmodelingguide.com/valuation-concepts/discounted-cash-flow/#comments</comments>
		<pubDate>Mon, 08 Mar 2010 06:00:40 +0000</pubDate>
		<dc:creator>Financial Modeling Guide</dc:creator>
				<category><![CDATA[Valuation Concepts]]></category>
		<category><![CDATA[financial analyst]]></category>
		<category><![CDATA[financial model]]></category>
		<category><![CDATA[financial modeling]]></category>
		<category><![CDATA[valuation]]></category>

		<guid isPermaLink="false">http://www.financialmodelingguide.com/valuation-concepts/discounted-cash-flow/</guid>
		<description><![CDATA[When a financial analyst is required to conduct a financial valuation on the business or company being forecasted by the financial model, a commonly used valuation technique in a financial modeling exercise is the Discounted Cash Flow (DCF) method. 
The DCF method uses a nine step process to value a business enterprise:

Forecast Free Cash Flow (FCF)
Estimate the [...]


Related posts:<ol><li><a href='http://www.financialmodelingguide.com/valuation-concepts/mechanics-of-discounted-cash-flow-valuation-wacc/' rel='bookmark' title='Permanent Link: Mechanics of Discounted Cash Flow Valuation &#8211; WACC'>Mechanics of Discounted Cash Flow Valuation &#8211; WACC</a></li>
<li><a href='http://www.financialmodelingguide.com/valuation-concepts/multiples-analysis/' rel='bookmark' title='Permanent Link: Financial Valuation Concepts &#8211; Market Multiples Analysis'>Financial Valuation Concepts &#8211; Market Multiples Analysis</a></li>
<li><a href='http://www.financialmodelingguide.com/valuation-concepts/total-enterprise-value/' rel='bookmark' title='Permanent Link: Financial Valuation Concepts &#8211; Enterprise Value'>Financial Valuation Concepts &#8211; Enterprise Value</a></li>
</ol>]]></description>
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		<slash:comments>6</slash:comments>
		</item>
		<item>
		<title>Financial Valuation Concepts &#8211; Market Multiples Analysis</title>
		<link>http://www.financialmodelingguide.com/valuation-concepts/multiples-analysis/</link>
		<comments>http://www.financialmodelingguide.com/valuation-concepts/multiples-analysis/#comments</comments>
		<pubDate>Fri, 26 Feb 2010 05:30:05 +0000</pubDate>
		<dc:creator>Financial Modeling Guide</dc:creator>
				<category><![CDATA[Valuation Concepts]]></category>
		<category><![CDATA[financial analyst]]></category>
		<category><![CDATA[financial model]]></category>
		<category><![CDATA[financial modeling]]></category>
		<category><![CDATA[Financial Ratios]]></category>
		<category><![CDATA[valuation]]></category>

		<guid isPermaLink="false">http://www.financialmodelingguide.com/financial-modeling-tips/tips/financial-valuation-concepts-market-multiples/</guid>
		<description><![CDATA[A discounted cash flow valuation (or DCF) is theoretically the soundest approach to value assets or businesses in a financial modeling and analysis exercise.
However, an alternate valuation approach known as market multiples analysis (also known as comparable companies analysis or direct comparison analysis) is widely used in practice, especially to value companies with high growth [...]


Related posts:<ol><li><a href='http://www.financialmodelingguide.com/valuation-concepts/market-multiples/' rel='bookmark' title='Permanent Link: Market Multiples Analysis &#8211; Pros and Cons'>Market Multiples Analysis &#8211; Pros and Cons</a></li>
<li><a href='http://www.financialmodelingguide.com/valuation-concepts/alternative-financial-valuation-concepts/' rel='bookmark' title='Permanent Link: Alternative Financial Valuation Concepts'>Alternative Financial Valuation Concepts</a></li>
<li><a href='http://www.financialmodelingguide.com/video/analysis-and-valuation-of-equity-investments/' rel='bookmark' title='Permanent Link: Analysis and Valuation of Equity Investments'>Analysis and Valuation of Equity Investments</a></li>
</ol>]]></description>
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		<slash:comments>1</slash:comments>
		</item>
		<item>
		<title>Strategies &amp; Tools For Small Business Valuation</title>
		<link>http://www.financialmodelingguide.com/valuation-concepts/small-business-valuation/</link>
		<comments>http://www.financialmodelingguide.com/valuation-concepts/small-business-valuation/#comments</comments>
		<pubDate>Wed, 24 Feb 2010 06:00:18 +0000</pubDate>
		<dc:creator>Financial Modeling Guide</dc:creator>
				<category><![CDATA[Valuation Concepts]]></category>
		<category><![CDATA[excel]]></category>
		<category><![CDATA[financial analyst]]></category>
		<category><![CDATA[financial model]]></category>
		<category><![CDATA[financial modeling]]></category>
		<category><![CDATA[spreadsheet]]></category>
		<category><![CDATA[valuation]]></category>

		<guid isPermaLink="false">http://www.financialmodelingguide.com/valuation-concepts/small-business-valuation/</guid>
		<description><![CDATA[In reality, a business is simply an investment medium and its value is determined by the returns that it offers to shareholders. Existing and potential small business owners who appreciate business valuation concepts and investment returns can make informed decisions and maximize opportunities to improve performance and profitability when they arise.
An informed small business owner [...]


Related posts:<ol><li><a href='http://www.financialmodelingguide.com/analytical-tools/using-analytical-tools/' rel='bookmark' title='Permanent Link: Using Analytical Tools in Financial Modeling'>Using Analytical Tools in Financial Modeling</a></li>
<li><a href='http://www.financialmodelingguide.com/valuation-concepts/financial-valuation-concepts-the-internal-rate-of-return-irr/' rel='bookmark' title='Permanent Link: Financial Valuation Concepts &#8211; The Internal Rate of Return (IRR)'>Financial Valuation Concepts &#8211; The Internal Rate of Return (IRR)</a></li>
<li><a href='http://www.financialmodelingguide.com/video/analysis-and-valuation-of-equity-investments/' rel='bookmark' title='Permanent Link: Analysis and Valuation of Equity Investments'>Analysis and Valuation of Equity Investments</a></li>
</ol>]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Market Multiples Analysis &#8211; Pros and Cons</title>
		<link>http://www.financialmodelingguide.com/valuation-concepts/market-multiples/</link>
		<comments>http://www.financialmodelingguide.com/valuation-concepts/market-multiples/#comments</comments>
		<pubDate>Mon, 15 Feb 2010 05:30:32 +0000</pubDate>
		<dc:creator>Financial Modeling Guide</dc:creator>
				<category><![CDATA[Valuation Concepts]]></category>
		<category><![CDATA[Accounting]]></category>
		<category><![CDATA[financial analyst]]></category>
		<category><![CDATA[financial model]]></category>
		<category><![CDATA[financial modeling]]></category>
		<category><![CDATA[valuation]]></category>

		<guid isPermaLink="false">http://www.financialmodelingguide.com/valuation-concepts/multiples-analysis-pros-cons/</guid>
		<description><![CDATA[Market multiples are easy to apply and are widely used, but a good financial analyst should be aware that as a financial valuation approach, market multiples analysis also suffers from several serious limitations.
We will examine some of the pros and cons of market multiple analysis, so that financial analysts can make an informed decision on [...]


Related posts:<ol><li><a href='http://www.financialmodelingguide.com/valuation-concepts/multiples-analysis/' rel='bookmark' title='Permanent Link: Financial Valuation Concepts &#8211; Market Multiples Analysis'>Financial Valuation Concepts &#8211; Market Multiples Analysis</a></li>
<li><a href='http://www.financialmodelingguide.com/valuation-concepts/alternative-financial-valuation-concepts/' rel='bookmark' title='Permanent Link: Alternative Financial Valuation Concepts'>Alternative Financial Valuation Concepts</a></li>
<li><a href='http://www.financialmodelingguide.com/valuation-concepts/capital-budgeting-irr-npv/' rel='bookmark' title='Permanent Link: Capital Budgeting and the Pros and Cons of IRR and NPV'>Capital Budgeting and the Pros and Cons of IRR and NPV</a></li>
</ol>]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Commonly Used Terms In Business &amp; Financial Valuation</title>
		<link>http://www.financialmodelingguide.com/valuation-concepts/financial-valuation-terms/</link>
		<comments>http://www.financialmodelingguide.com/valuation-concepts/financial-valuation-terms/#comments</comments>
		<pubDate>Mon, 08 Feb 2010 05:00:46 +0000</pubDate>
		<dc:creator>Financial Modeling Guide</dc:creator>
				<category><![CDATA[Valuation Concepts]]></category>
		<category><![CDATA[valuation]]></category>

		<guid isPermaLink="false">http://www.financialmodelingguide.com/?p=440</guid>
		<description><![CDATA[Useful glossary of key business and financial valuation terms as prescribed and used by the members of leading business valuation professional societies and organizations in the United States and Canada.


Related posts:<ol><li><a href='http://www.financialmodelingguide.com/valuation-concepts/financial-valuation-concepts-the-internal-rate-of-return-irr/' rel='bookmark' title='Permanent Link: Financial Valuation Concepts &#8211; The Internal Rate of Return (IRR)'>Financial Valuation Concepts &#8211; The Internal Rate of Return (IRR)</a></li>
<li><a href='http://www.financialmodelingguide.com/valuation-concepts/total-enterprise-value/' rel='bookmark' title='Permanent Link: Financial Valuation Concepts &#8211; Enterprise Value'>Financial Valuation Concepts &#8211; Enterprise Value</a></li>
<li><a href='http://www.financialmodelingguide.com/valuation-concepts/mechanics-of-discounted-cash-flow-valuation-wacc/' rel='bookmark' title='Permanent Link: Mechanics of Discounted Cash Flow Valuation &#8211; WACC'>Mechanics of Discounted Cash Flow Valuation &#8211; WACC</a></li>
</ol>]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Damodaran on Dividends and Stock Buy Backs</title>
		<link>http://www.financialmodelingguide.com/valuation-concepts/damodaran-on-dividends-and-stock-buy-backs/</link>
		<comments>http://www.financialmodelingguide.com/valuation-concepts/damodaran-on-dividends-and-stock-buy-backs/#comments</comments>
		<pubDate>Fri, 05 Feb 2010 05:20:56 +0000</pubDate>
		<dc:creator>Financial Modeling Guide</dc:creator>
				<category><![CDATA[Valuation Concepts]]></category>
		<category><![CDATA[Video]]></category>
		<category><![CDATA[excel]]></category>
		<category><![CDATA[financial model]]></category>
		<category><![CDATA[financial modeling]]></category>
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		<guid isPermaLink="false">http://www.financialmodelingguide.com/video/damodaran-on-dividends-and-stock-buy-backs/</guid>
		<description><![CDATA[Professor Aswath Damodaran, Professor of Finance at the New York University’s Stern School of Business observed in his study of the 10 year historical dividend policies of all U.S. public listed companies, that there is general degree of inertia in company dividend policies &#8211; most companies pay out dividends that are similar to their past [...]


Related posts:<ol><li><a href='http://www.financialmodelingguide.com/video/damodaran-beta-risk/' rel='bookmark' title='Permanent Link: Damodaran On Beta Risk'>Damodaran On Beta Risk</a></li>
<li><a href='http://www.financialmodelingguide.com/video/analysis-and-valuation-of-equity-investments/' rel='bookmark' title='Permanent Link: Analysis and Valuation of Equity Investments'>Analysis and Valuation of Equity Investments</a></li>
<li><a href='http://www.financialmodelingguide.com/valuation-concepts/financial-valuation-concepts-the-internal-rate-of-return-irr/' rel='bookmark' title='Permanent Link: Financial Valuation Concepts &#8211; The Internal Rate of Return (IRR)'>Financial Valuation Concepts &#8211; The Internal Rate of Return (IRR)</a></li>
</ol>]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Mechanics of Discounted Cash Flow Valuation &#8211; WACC</title>
		<link>http://www.financialmodelingguide.com/valuation-concepts/mechanics-of-discounted-cash-flow-valuation-wacc/</link>
		<comments>http://www.financialmodelingguide.com/valuation-concepts/mechanics-of-discounted-cash-flow-valuation-wacc/#comments</comments>
		<pubDate>Mon, 25 Jan 2010 06:00:29 +0000</pubDate>
		<dc:creator>Financial Modeling Guide</dc:creator>
				<category><![CDATA[Valuation Concepts]]></category>
		<category><![CDATA[financial analysis]]></category>
		<category><![CDATA[financial model]]></category>
		<category><![CDATA[financial modeling]]></category>
		<category><![CDATA[valuation]]></category>
		<category><![CDATA[WACC]]></category>

		<guid isPermaLink="false">http://www.financialmodelingguide.com/financial-modeling-tips/tips/mechanics-of-discounted-cash-flow-valuation-wacc/</guid>
		<description><![CDATA[One of the most important aspects of financial theory in financial modeling and valuation is the weighted average cost of capital (WACC). The WACC is the discount rate, or time value of money, used to convert expected future cash flow into present value.
In practical terms, WACC represents what it would cost, on average, to raise [...]


Related posts:<ol><li><a href='http://www.financialmodelingguide.com/valuation-concepts/discounted-cash-flow/' rel='bookmark' title='Permanent Link: Financial Valuation Concepts &#8211; Discounted Cash Flow'>Financial Valuation Concepts &#8211; Discounted Cash Flow</a></li>
<li><a href='http://www.financialmodelingguide.com/valuation-concepts/free-cash-flow/' rel='bookmark' title='Permanent Link: The Concept Of Free Cash Flow (FCF)'>The Concept Of Free Cash Flow (FCF)</a></li>
<li><a href='http://www.financialmodelingguide.com/valuation-concepts/financial-valuation-concepts-the-internal-rate-of-return-irr/' rel='bookmark' title='Permanent Link: Financial Valuation Concepts &#8211; The Internal Rate of Return (IRR)'>Financial Valuation Concepts &#8211; The Internal Rate of Return (IRR)</a></li>
</ol>]]></description>
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		<slash:comments>12</slash:comments>
		</item>
		<item>
		<title>Financial Valuation Concepts &#8211; The Internal Rate of Return (IRR)</title>
		<link>http://www.financialmodelingguide.com/valuation-concepts/financial-valuation-concepts-the-internal-rate-of-return-irr/</link>
		<comments>http://www.financialmodelingguide.com/valuation-concepts/financial-valuation-concepts-the-internal-rate-of-return-irr/#comments</comments>
		<pubDate>Mon, 18 Jan 2010 05:00:44 +0000</pubDate>
		<dc:creator>Financial Modeling Guide</dc:creator>
				<category><![CDATA[Valuation Concepts]]></category>
		<category><![CDATA[excel]]></category>
		<category><![CDATA[financial analysis]]></category>
		<category><![CDATA[financial analyst]]></category>
		<category><![CDATA[financial model]]></category>
		<category><![CDATA[financial modeling]]></category>
		<category><![CDATA[valuation]]></category>

		<guid isPermaLink="false">http://www.financialmodelingguide.com/features/financial-valuation-concepts-the-internal-rate-of-return-irr/</guid>
		<description><![CDATA[The internal rate of return (or IRR) is a common financial valuation metric used by financial analysts to calculate and assess the financial attractiveness / viability of capital intensive projects or investments.
As the IRR is normally easier to understand than the result of a discounted cash flow (DCF) analysis (i.e. the net present value or [...]


Related posts:<ol><li><a href='http://www.financialmodelingguide.com/valuation-concepts/alternative-financial-valuation-concepts/' rel='bookmark' title='Permanent Link: Alternative Financial Valuation Concepts'>Alternative Financial Valuation Concepts</a></li>
<li><a href='http://www.financialmodelingguide.com/valuation-concepts/capital-budgeting-irr-npv/' rel='bookmark' title='Permanent Link: Capital Budgeting and the Pros and Cons of IRR and NPV'>Capital Budgeting and the Pros and Cons of IRR and NPV</a></li>
<li><a href='http://www.financialmodelingguide.com/video/analysis-and-valuation-of-equity-investments/' rel='bookmark' title='Permanent Link: Analysis and Valuation of Equity Investments'>Analysis and Valuation of Equity Investments</a></li>
</ol>]]></description>
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		<slash:comments>28</slash:comments>
		</item>
		<item>
		<title>Capital Budgeting and the Pros and Cons of IRR and NPV</title>
		<link>http://www.financialmodelingguide.com/valuation-concepts/capital-budgeting-irr-npv/</link>
		<comments>http://www.financialmodelingguide.com/valuation-concepts/capital-budgeting-irr-npv/#comments</comments>
		<pubDate>Mon, 11 Jan 2010 04:50:13 +0000</pubDate>
		<dc:creator>Financial Modeling Guide</dc:creator>
				<category><![CDATA[Valuation Concepts]]></category>
		<category><![CDATA[financial analyst]]></category>
		<category><![CDATA[financial model]]></category>
		<category><![CDATA[financial modeling]]></category>
		<category><![CDATA[valuation]]></category>

		<guid isPermaLink="false">http://www.financialmodelingguide.com/valuation-concepts/capital-budgeting-and-the-pros-and-cons-of-irr-and-npv/</guid>
		<description><![CDATA[Capital budgeting is an executive decision making technique that all good financial analysts should be familiar with, in order to ensure that their financial modeling and analysis skill set remains relevant and practical to business realities. Capital budgeting is essentially an assessment on whether a capital investment into a project or business asset is worth [...]


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<li><a href='http://www.financialmodelingguide.com/financial-modeling-tips/tips/return-cost-of-capital/' rel='bookmark' title='Permanent Link: Understanding Return on Capital and Cost of Capital'>Understanding Return on Capital and Cost of Capital</a></li>
<li><a href='http://www.financialmodelingguide.com/valuation-concepts/financial-valuation-concepts-the-internal-rate-of-return-irr/' rel='bookmark' title='Permanent Link: Financial Valuation Concepts &#8211; The Internal Rate of Return (IRR)'>Financial Valuation Concepts &#8211; The Internal Rate of Return (IRR)</a></li>
</ol>]]></description>
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		<slash:comments>3</slash:comments>
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