Board Purpose & Scope
Posted: September 7th, 2018, 4:52 pm
Board Purpose
To give a home for posts/questions/discussions relating to analysis of companies as investment opportunities by using figures extracted from the Financial statements from company period ends and an application of formulae/ratios
Scope
Scope is quite broad, including accounting practices, validity/interpreting of the figures, the value of formulae (e.g. sector/company size specific where are P/E, P/sales, P/NAV appropriate or otherwise). The ratios can be discussed against one, zero, or several companies......against one year...or against each AR of a firm over a period of years, e.g. how capital/equity structure is changing, whether this makes the company more or less desirable. In addition to discussion of profitability (ROCE, ROE), cash flow, indebtedness, also valuation techniques (Price multiples, DCF variants etc.) can be discussed.
To give a home for posts/questions/discussions relating to analysis of companies as investment opportunities by using figures extracted from the Financial statements from company period ends and an application of formulae/ratios
Scope
Scope is quite broad, including accounting practices, validity/interpreting of the figures, the value of formulae (e.g. sector/company size specific where are P/E, P/sales, P/NAV appropriate or otherwise). The ratios can be discussed against one, zero, or several companies......against one year...or against each AR of a firm over a period of years, e.g. how capital/equity structure is changing, whether this makes the company more or less desirable. In addition to discussion of profitability (ROCE, ROE), cash flow, indebtedness, also valuation techniques (Price multiples, DCF variants etc.) can be discussed.