3. Valuation and Corporate Finance

8th April 2020

Interest Rate in the PMT and Similar Functions

I have previously posted about the need to be very careful when using the PMT and similar functions, as mistakes can easily arise. One area of […]
12th February 2019

The Role of Risk Modelling and Monte Carlo Simulation in Cash Flow Valuation

Since 1989, I have been using risk modelling combined with Monte Carlo simulation to improve the robustness, transparency and accuracy of cash flow valuation models. This […]
29th November 2017

The Effects of Appraised Valuations on Volatility and Capital Allocations to low Liquidity Assets

Financial Reporting requirements often demand that estimates of value are made for illiquid assets or instruments (e.g. private equity, property, some types of bonds, and other […]
3rd October 2017

Economic and Financial Evaluation of Oil and Gas Projects under Uncertainty: Recent Activities in Vietnam

Recently I had the pleasure to visit Hanoi, Vietnam, to run a course on the economic evaluation of projects, taking into account the risks and uncertainties […]
25th September 2017

How to Account for Cash Flow Risk when Doing Valuation?

Core economic and financial theory states that it is the average (mean or Expected Value) of the cash flows that should be discounted at a rate […]
25th March 2016

Common Mistakes in Valuation Modelling

Valuation is generally regarded as a mixture of a science and an art: Whilst, generally speaking, fairly well established financial theory can be used as the […]
13th June 2015

NPVs versus IRRs for Evaluating Projects which May be Delayed

There is already much literature which compares the pros and cons of using the internal-rate-of-return (IRR) as a measure of a project’s merit compared to using […]
2nd June 2015

Financial Statement Modelling and Project Finance Modelling: Some Similarities and Differences

In many ways, the modelling of project finance applications is similar to the modelling of financial statements, but there are also some differences; these topics are […]
23rd February 2012

Is Diversification Through Large Portfolios a Myth?

It is often thought that a large portfolio of assets is well-diversified, in the sense that its standard deviation is proportionally smaller than that of the […]