Tuesday, July 21, 2009

Teaching at the Analyst Exchange

We were doing our training earlier last week when we approached terminal values. Although we were shown the formula, I mentioned that I could prove how the formula was derived from first principles (as well as outline the fundamental assumptions for when this formula works ... and falls apart). It's a very elegant solution that explains terminal value as well as enterprise value multiples.

The math used was based on my post about geometric sequences and series and extended to encompass finance discounted cash flows.

I'm requesting a copy of the video so I can post it on Youtube and this blog. Please excuse my attire. It was casual Friday.

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