Book-review: Narrative and Numbers, Damodaran

We either cater to the story telling or numbers crunching profession. Good valuation requires both.

Food for Thought #26 // Links🔗

This time the most interesting content I stumbled over includes: valuation, Tinkoff, Sberbank, chips, …

Food for Thought #18 // Links🔗

This time the most interesting content I stumbled over includes: A Must-Watch-Video!, Quality Shareholders, software, Big Lessons rfom History, Overton Window, Oil majors, our tax ignorance, …

The 100-Dollar-Company or The Importance of Time (for High Returns)

Return metrics are usually normalized to annual periods. And this is because the dimension of time plays a crucial role in the realm of investment returns.

Links🔗: Food for Thought

Below you find the most interesting investment-related content and thought-provoking articels I stumbled about in the recent past. Enjoy reads about: Bollore, Wirecard, Flexibility, Finance Books, Supply Chain Finance, Crown Castle, the bull market vs the economy, Nintendo, …

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How do Share Buy Backs and Other Sorts of Capital Allocation create Shareholder Value for You?

As a shareholder, you do want to know if all these share buy backs create value for you (and me) …

Links🔗: Food for Thought

Below you find the most interesting investment-related content and thought-provoking articels I stumbled about in the recent past.
Enjoy 🙂 reading , thinking about and getting involved in discussions

Fundamental Valuation of Check Point Software (CHKP)

Check Point Software Technologies Ltd. is an Israeli Company, that develops and sells Information Technology Security products. It is growing much slower than its highflying peers (Palo Alto, Fireeye, Fortinet) but it is very profitable. I do not have a good IT knowledge, but anyway, I wanted to perform a DCF Valuation of this Company for a long time now!

Link: Damodaran updated his datasets

Damodaran updates his useful datasets for valuation purposes about

• Risk free rates in currencies
• Equity risk premiums (ERPs)
• Corporate default spreads
• Corporate tax rates
• Country risk premiums
• and more

DCF Valuation Framework

This post describes the handling of leasing liabilities and leasing expenses wihtin the concept of discounted cashflow or DCF valuation. It is a follow-up post after IFRS 16 – Leases and What is Debt?, answering the question of How to Capture Lease Payments into Perpetuity. But first, I do a quick Introduction to DCF Valuations to get a better understanding of the topic.

What is Debt?

As announced in my previous post about IFRS 16 Leases, this follow-up post dicusses the question of What is Debt? . First, I describe common Features of Debt and Leasing Liabilities as well as answering Why to treat them as Debt. Then I discuss What Items to include in Debt and How to calculate Net Debt. Finally I give a Summary of the article and an Outlook on a further follow-up post discussing How to incorporate Net Debt within a DCF Valuation.

IFRS 16 – Leases

As more and more financial reports discuss the topic of IFRS 16 – Leases adoption and how its affects their reporting, I decided it is time to get a better understanding of the scope of IFRS 16 and how it affects reporting items within Balance Sheet, Income Statement and Cashflow Statements. In conclusion, I am going to describe some effects on Financial Ratios as well as giving an outlook on implications on Net Debt and Valuation Concepts.

Valuation at its best: IPO of Saudi Aramco

As a value investor it is always important to remind oneself of what is valuation vs pricing. This is even more true during times