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...