Introduction The Enterprise Value to EBITDA ratio, also known as the EBITDA multiple, is a ratio used to measure the value of a company. Usually, the reason for calculating the EV/EBITDA ratio is to use it as a comparison tool between different companies. It can also be helpful in other …

Introduction Comparative Company Analysis (CCA) is a process used to compare two similar companies, operating in the same industry. It is a valuation methodology that allows users to evaluate the ratios of similar public companies and use those ratios to derive the value of another company. CCA assists users in …

Introduction The Discounted Cash Flow (DCF) model is a method that investors use to estimate the value of an investment based on future cash flows. The DCF model uses the forecasted cash flows of investment to determine its value today. However, this tool isn’t only for investors. Business owners and …

Introduction EBITDA, short for Earnings Before Interest, Taxes, Depreciation, and Amortization, is an indicator of the financial performance of a company. It is an alternative to the traditional measures of a company’s performance, such as operating profits. Similarly, it is also considered an alternative for the operational cash flows of …

Introduction When it comes to the shares of companies, there are two commonly available types in the market. These include common shares and preferred shares. While they both give shareholders certain rights, there are some differences between them. Therefore, it is crucial to understand the differences between them. What are …

A stock warrant is a financial contract between a company and investors, which gives them the right to purchase newly issued shares of a stock at a set price for a set period of time. The company directly issues the new stock instead of using issued stock. However, investors that get a …

A bond is a debt instrument issued by entities to obtain a loan. It comes with a fixed income, usually based on a fixed interest rate. Usually, companies use bonds to raise debt finance. However, other entities, such as government organizations may also issue bonds to gather funds. Overall, a …

A stock option is a contract between a company and its investors that gives them the right to buy or sell underlying stocks at a preset price within a specific time period. Just like ordinary stocks of a company, its stock options are also available for trade on stock exchanges. …

If you’re looking to set up your own algorithmic trading business, quantitative trading is a market you can consider. Many independent investors are exploring the market, learning to generate data, and execute it. In the past, quantitative trading used to be the business of hedge funds and other financial institutions …

Is knowledge of accounting important in the field of quantitative finance?  We found some interesting discussions. A poster believes that it is important: Accounting is a vital skill if you end up in a managerial position, and unless your career goal is to always be a cog in someone else’s …