Valuation

Inflation and its Impact on Valuation

|

Inflation is an important factor for any business to understand. Inflation, which is the general increase in prices over time, affects purchasing power and can significantly impact a business’s financial health and valuation. The main problem with fiat money is that it can be printed anytime as it is not backed by anything. A dollar … Inflation and its Impact on Valuation

Understanding the Cost of Capital (WACC) and its Influence on Valuation

|

Introduction The cost of capital represents the price a business pays for using financial resources, whether from debt, equity, or a combination of both. It plays a significant role in valuation, which is the process of determining the economic value of a company. A clear grasp of these concepts can help businesses secure the right … Understanding the Cost of Capital (WACC) and its Influence on Valuation