The Big Picture: More than Free Cash Flow


Free Cash Flow, Valuation

Free cash flow is the amount of cash that can be extracted from a business to pay a dividend, reduce debts and buy back its shares. Hence it is a neat figure to value how much a business should worth. However, free cash flow sometimes doesn’t provide us with the full picture. I was going […]

Karex – Where Value Comes From


Strategy, Valuation

Karex is the largest condom contract manufacturer producing over 5 billion condoms annually to global brands like Durex, Ansell, government, and health organizations. While most of their earnings come from contract manufacturing (OEM) market, Karex’s also sells their own condom brands under Carex and INNO via OBM (original brand manufacturing) market. Karex named ‘Expansion of […]

A Simple Way to Value Banks


Valuation

The starting point to value banks is to understand how banks make money. Banks use the funds provided by their customers in the form of deposits and lend it to other customers that require financing whether that’s for credit card, house, car, business, personal or so forth. The spread between the deposit rate and financing […]

How Not To Do Valuation


Valuation

Valuation is an estimation of how much a business is worth to a sensible buyer and there are many ways to value a business or stock by looking at its assets, liabilities, how much cash flow can be generated from those assets, industry dynamic, competition and so on. Instead of writing about how to do […]