Fervent | Finance Courses, Investing Courses
Rigorous Courses, Backed by Research, Taught with Simplicity.
In this article, we're going to explore how to calculate future value. Let's get into it. TL;DR The Future Value formula (for a single cash flow) is: $$ FV = CF_t(1+r)^t $$ Where …
Continue Reading about How to Calculate Future Value (Detailed Examples Included) →
In this article, we're going to explore what discounting cash flows is, including what it means, how it works, and why we should even bother doing it. Let's get into it. What is Discounting Cash …
Continue Reading about Discounting Cash Flows Explained (With Example and Applications) →
In this article, we're going to learn how to calculate portfolio risk for a 2 asset portfolio. TL;DR Portfolio risk (for a 2 asset portfolio) can be calculated as... $$ \sigma_p = …
Continue Reading about How to Calculate Portfolio Risk From Scratch (Examples Included) →
In this article, we're going to learn how to calculate portfolio returns from scratch. TL;DR Portfolio returns can be calculated using this equation: $$ r_p = \sum_{i=1}^k \omega_i …
Continue Reading about How to Calculate Portfolio Returns From Scratch (Example Included) →
In this article we're going to explore what is Systematic Risk (aka Market Risk, or "Beta"). We're also going to learn how to calculate beta (or systematic risk) from scratch. Just a quick …
Continue Reading about What is Systematic Risk (aka Beta)? How to Calculate Beta of a Stock? →
In this article, we're going to explore asset pricing models. Let's get into it. This is probably the most extensive article on the subject on "the internet", so you might want to grab a cup of tea …
Continue Reading about Asset Pricing Models Explained (Extensive Overview) →
In this article, we're going to learn about a bond's "trading status". And this brings clarity about Discount vs Premium Bonds; everything from what exactly these mean, and why they mean what they …
Continue Reading about Discount vs Premium Bonds – Trading Status →
What are Perpetual Bonds, aka Consols? In this article, we'll explore this; and also learn how to value perpetual bonds. Let's get into it. What are Perpetual Bonds Firstly, what are perpetual …
Continue Reading about What are Perpetual Bonds? How to Value Them? →
In this article, we're going to explore how to value bonds (aka fixed income valuation). To keep things relatively simple, we'll focus on one specific fixed income security - straight bonds (aka …
Continue Reading about How to Value Bonds – Fixed Income Valuation →
In this article, we're going to explore the correlation of stocks, including what it is, and how we calculate stock correlation. So let's get into it. What is the Correlation of Stocks? Firstly, …
Continue Reading about Correlation of Stocks Explained (Interpretation, Formula, Example) →
In this article, we're going to explore the Market to Book Ratio (aka Market to Book Multiple). For this particular Multiple, we need to know a little bit of accounting. So let's just have a …
In this article, we're going to explore the Price to Sales ratio (aka P/s Ratio), and learn how to calculate Price to Sales Ratio, too. What is the Price to Sales Ratio? The Price to Sales Ratio …
Continue Reading about Price to Sales Ratio Explained (With Examples) →
