by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Appreciate in Value?Appreciation refers to an increase in value of an asset over time. Appreciation occurs due to different reasons, including an increase in demand or fluctuation and growth of interest rates. In accounting, appreciation refers to an upward...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Present Value?In economics and finance, the present value refers to today’s value of future total cash flow. Present value tells you how much you will need today to achieve a certain amount in the future. On the other hand, future values give you an...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is the Price Earnings-to-Growth Ratio?The PEG ratio is a metric used to determine the trade-off between the stock’s price, the earnings it will generate, and the growth rate expected by the company. If a company has a high growth rate, then it is expected...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Buyback Ratio? Buyback ratio refers to the money that an organization pays to buy back its own common shares over the previous year divided by the market capitalization at the period when buyback starts. This ratio clearly helps in identifying and comparing...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is the Income Approach to Valuation?There are many valuation methods and appraisal approaches that evaluators use when determining the fair market value of a property. The income approach is a valuation method used by appraisers to estimate the fair value of a...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Warehouse Financing?Warehouse financing is a form of financing in which manufacturers take loans using their goods or commodities as collateral for the loan. The collateral is held in trust, that is, a third party who is the trustee in the financial...
