The probability of default is an essential risk element of the levered company, yet it is missed by both the academic and the investment community — Disclosure: This article discusses finance techniques and is for people familiar with the concepts of fundamental valuation and Discounted Cash Flow (DCF). Following the release of the second article where we showed the usefulness of APV, it is time to finalize our journey of Fixing Widespread Mistakes of Valuation.

Underappreciated and underused methodology providing a superior alternative to WACC — Disclosure: This article discusses finance techniques and is for people familiar with the concepts of fundamental valuation and Discounted Cash Flow (DCF). Following the first article Fixing Widespread Mistakes in Valuation. Part 1: Never use WACC, where we showed the limitations of this method, it is time to elaborate on…

Correcting the flawed practices almost all business schools teach and professionals employ — Disclosure: This article discusses finance techniques and is for people familiar with the concepts of fundamental valuation and Discounted Cash Flow (DCF). With nearly 20 years in the finance industry, I’ve been watching practitioners around the world, including myself, make traditionally ingrained mistakes in valuation over and over. To contribute…

We live in an era of booming startup investments. Many companies achieve over billion-dollar valuations in private markets and gain the honorary Unicorn title coined by Aileen Lee in her 2013 article. The media and business worlds are full of statements about Unicorns being worth this or that amounts, usually…

Business incumbents have a problem: entrepreneurial people do not want to work there. …

With the rise of technologically driven ventures in financial services over the past decade, banks have been anticipated more and more to start resembling their big tech peers and go on a shopping spree for FinTech companies. In the current wave of the post-2008 crisis period, the Banking-FinTech relationship started…