DCF vs NPV: What’s the Difference?

In valuation, the primary approach of coming up with a value for any cash-flow-generating asset is by adding together all its future cash flows at their present value, by discounting them with a risk-adjusted discount rate. “The intrinsic value can be defined simply. It is the discounted value of the cash that can be taken out of […]

Negative Operating Income: Causes and Meaning

What’s Operating Income? Operating Income is a profitability measure and represents the revenue of a business that is left after deducting the cost of goods sold (COGS) and operating expenses. It is regarded as a useful component for many accounting metrics since interest payments, taxes, and other financial expenses aren’t included in the measure yet. […]