[This is an anonymous guest post by Homer. The author is a denizen of the the message boards on InvestorVillage and is long XOHO. Do you want a turn at the microphone?]
The Basic Model:
The VALUE of the common equity of a firm is the value of the residual claim on the assets. For most ongoing concerns this is equal to the present value of future cash flows minus net liabilities. Thus, we need to look at three variables: [Read more →]