Valuation

Enterprise Value vs Market CapStock Guides

Enterprise Value vs. Market Cap: Which Should Investors Use?

Learn the difference between enterprise value and market cap, when investors should use each, and how debt and cash can completely change a stock's valuation.

Brian McCormick ·

Terminal Value in a DCF: Perpetuity Growth vs. Exit MultipleStock Guides

Terminal Value in a DCF: Perpetuity Growth vs. Exit Multiple

Learn what terminal value means in a DCF, how perpetuity growth and exit multiple methods work, and when each approach makes sense.

Brian McCormick ·

Discount Rate Future Cash Flow LimitationsStock Guides

DCF Valuation Limitations: Why DCFs Can Be Wrong

See why a mathematically correct DCF can still be wrong, from cyclical cash flow and terminal value to stock based compensation, dilution and acquisitions.

Brian McCormick ·

How to Choose a Discount Rate DCF Stock UnlockStock Guides

How to Choose a Discount Rate for a DCF (With Real Examples)

Learn what discount rate to use in a DCF, when WACC or a required return makes sense, and how different rates change a stock's fair value.

Brian McCormick ·