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This article describes an advancement of the logistic growth model, described in a previous article. The logistic growth model will be used for predicting future revenues and earnings of a company. The model is especially suitable for high growth companies in order to give a clue of the value of the company. For companies at…
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The security market line (graph 1) is a well known concept in the finance world. It shows the dependency between expected return and risk (which is often measured by volatility). This model is widely used for finding a trade-off between return and risk. The more risk an investor is willing to accept, the more return…
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Have you ever had the thought “I wan’t to buy this stock, but I will wait for a cheaper price”?On this article, I want to answer the question, whether it is useful to use limit orders for buying stocks. I didn’t find the information I was looking for anywhere, so I started to create my…
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In this article, I want to have a look at randomness and what we can learn from it. The effects of randomness can be explained best with simple examples, therefore let’s play heads or tails: You have to stake 100$ and when tail appears, your stake will be doubled, so you will have 200$. When…
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As described on a previous post, logistic growth models can be used on evaluating growth stocks. Tesla would be a perfect example for applying this model, as Tesla is a fast growing company with already a record of business activities over the last years and a more or less predictable business model. First I want…
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We all look at growth rates, when evaluating the prospects of a business or a market. It helps us to better estimate, what we are willing to pay now, in order to reach the “sweet fruits” in the future. Very often, NPV (net present value) calculations are a good method for the evaluations. However, it…
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The PEG-ratio (Price-Earning-Growth-Ratio) is a common ratio for evaluating stocks and is very easy to calculate (by dividing the current P/E-ratio by the expected earnings-growth rate in percent). This ratio can give you a quick insight, whether a growth company is over- or undervalued at the stock market. Many people believe that a PEG ratio…
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As I enjoy designing and developing concepts, here is an attempt to the design of a vertical take-off and landing aircraft. For further information, please visit: https://martin-etzl.wixsite.com/website
Ideas on economics - by Martin Etzl 