Comparable company analysis is a way to determine how much a company is worth by comparing it to other companies of similar size in similar industries. Finance and investment banking professionals rely on comparable company analysis to inform mergers and acquisitions (M&A) and investing decisions. Other names professionals sometimes use for comparable company analysis include …
CAGR, which stands for compound annual growth rate, is the rate at which an investment grows. Finance professionals calculate the CAGR for investments between two points in time (typically years or months) to understand how well the investment performed in that period. Compound annual growth rates are useful for comparing the historical performance of investments …
Compound Annual Growth Rate (CAGR) Meaning and Example Read More »
Accounting is the area of financial services that deals with organizing and summarizing financial data for businesses and individuals. In business, accounting involves analyzing financial details and auditing company finances and transaction information. Although accounting is often misconstrued as a job that only focuses on adding and subtracting, the accounting industry is actually incredibly varied …
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Common stock is a type of tradeable asset, or security, that equates to ownership in a company. If you own common stock in a company, you have the right to vote on things like corporate policies and board of director decisions. Common stock is just one type of stock traded on public exchanges. In this …
Discounted cash flow (DCF) valuation is a type of financial model that determines whether an investment is worthwhile based on future cash flows. A DCF model is centered around the idea that a company’s value is determined by how well it can generate cash flows for its investors in the future. What Is DCF Used …
Discounted Cash Flow (DCF) Valuation: The Basics Read More »
A special purpose acquisition company (SPAC) is a company that has no actual business operations but goes through an initial public offering (IPO) to raise capital. The SPAC then purchases or merges with a private company. Because the SPAC is a public company (listed on a public stock exchange), the private company it acquires becomes …
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Private equity (PE) is an area of the financial services industry that involves firms making investments in private companies, or companies that aren’t traded on the public stock market. The investment into private companies is referred to as private equity, and private equity firms are the companies that make these types of investments. What Is …
BCG, also known as Boston Consulting Group, is a huge global consulting firm that prides itself on helping leaders worldwide confront their biggest challenges. Working in a variety of industries, BCG aims to help companies unlock their full potential and capitalize on opportunities. If you’re considering working at BCG, we’ve compiled all the details you …
Investment banking hours are notoriously long — a job in investment banking can involve working over 100 hours per week. However, investment bankers do not always work that many hours, and not every minute of every day is spent agonizing over Excel spreadsheets. In this guide, we’ll go over: How Many Hours Do Investment Bankers …
Investment Banking Hours: Everything You Need to Know Read More »
The investment banking career path can be rewarding, profitable, and challenging. In general, going into investment banking can be a great choice if you love crunching numbers, working with clients, and helping others accomplish big (expensive) goals. Plus, working a few years in investment banking can open up many job opportunities in other areas of …
