Financial Analysis

This Category is dedicated to articles related to Financial Analysis to understand strenght of a business.


Enterprise Value

What is Enterprise Value? Enterprise Value (EV) is the measure of the total value of the company. Instead of determining firm’s value based on market capitalization only, it gives …

Contribution Margin

What is Contribution Margin? Contribution margin means the selling price minus the variable cost incurred on the product. Thus, contribution margin is the ability of the firm to cover …

P/E Ratio

P/E Ratio Meaning The price earnings ratio, often called as P/E ratio is the ratio of company’s stock price to the company’s earnings per share. It is a market …

Margin of Safety

The margin of Safety is a measure of the profitability risk of a business. A business is profitable when revenue exceeds the costs. A part of the revenue is …