Myth 1: A valuation is an objective search for “true” value

This is an absolute lie. All valuations are biased. The only questions are “how much” and in which direction. A basic example would be a person who prefers Apple products over other brands. He will be biased towards telling…

What is Marketing?

Marketing is about identifying and meeting human and social needs. One of the shortest good definitions of marketing is “meeting needs profitably”. When Google recognized that people needed to more effectively and efficiently access information on the internet, it created a powerful search engine that organized and…

Case Study on Reliance Industries

The article that I am writing today is like connecting the dots of Reliance Industries till now. By end of this article, you will get to know why Anil Ambani went bankrupt from being the 6th richest man in the world. While Mukesh Ambani emerged…

I think there’s not much difference between air/water and ‘money’. Money is very important to sustain life. I’ve met many hypocrites talking obnoxiously about money but at the same time running behind it madly. I think money should not be the top priority but it definitely demands your attention. So…

There’s no doubt that value investing is all about the growth and risk in cash flows. DCF is what future money is worth now.

DCF analysis attempts to figure out the value of an investment today, based on projections of how much money it will generate in the future. This…

We will take 2 real examples here:

  1. General Electric
  2. Tesla (2015–2016)

In the case of Generic Electric, you will find Value investors that would like to get a dividend yield and buy stuff that’s relatively cheap. Value investors possess many characteristics of contrarians — they don’t follow the herd. Not…

Financial Modelling has become really simple these days due to the transparency that the companies have nowadays. You can have access to the same information as some big mutual funds or hedge funds have.

Let’s take LinkedIn for financial modelling. You must be wondering about its financial history and balance…

Before understanding these 2 risks we need to know what is the regression line and Beta

Beta- According to the Capital Asset Pricing Model, the expected return on the ith asset (any asset in your portfolio) is determined from its beta.

In other words, Beta is the regression slope coefficient…

Devan Mongia

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