Risk

Operating Leverage

What is corporate risk? A company’s risk comes down to the fluctuations of its free cash flows (FCF).  Assuming that the past reflects the future,...

Assessing Enterprise Risk Via Free Cash Flows

When looking at a company, from the smallest sole proprietorship to the largest multinational corporation, how does one assess risk?  Risk is simply the...

The Problem With Using Beta (β) As A Proxy For Risk

The following is a brief list of definitions for beta from various textbooks and research papers.  Though brief, this is a representative sampling of...

A Clearer Understanding of Beta

In the spreadsheet below, beta is calculated for Apple (AAPL) using the S&P500 as the market return, and basing beta on 5 years of...