Financial Ratios and the added value of the Cowley model
When we check the firmness of a company and its ability to withstand financial crises, we are required to determine some financial ratios which give us an image of the firmness on one hand, and on the other hand, check how these ratios affect the company’s risk level quantitatively by using Cowley’s model as a […]
The Linkage between the Cowley’s model and an internal risk assessment model
Investors are required to evaluate ventures and companies according to a variable risk perception based on the analysis of financial data and the determination of profit multipliers based on which they will make the investment. For example: if the profit multiplier per share is 4 and the annual operating profit per share before depreciation and […]
Determining the capitalization interest rate for projects based on sensitivity tests
Determining the discount rate for a project is a complex matter that may fundamentally change the viability of the investment in the project. To solve the problem, two factors were determined. One is the sensitivity tests of the venture in several possible scenarios and the other is the way market investors perceive the risk of […]
