XIRR fails when the first cash flow is zero or when there certain mixed cash flow patterns. Use our PROIRR to overcome this problem.

Unlike assumptions of other models, the assumptions used by DCF are unobservable and hence cannot be validated making the model unreliable.

Free cash flow is one of the critical metrics in valuation and project finance. However, calculating FCF accurately can be tricky,...

Introduction: Days Sales Outstanding (DSO) serves as a critical metric in financial analysis, reflecting a company's effectiveness in...

company has two sources of capital: (i) Equity and (ii) Debt. But there are certain sources that are in between equity and debt. One such...

One of the key equity valuation metrics for most industries is the Price to EPS or the PE ratio. All else held constant, the company with...

The net profit reported by a company often carries noises that are driven by certain accounting and funding choices, which makes it very...

Volatility is one of the important risk measures used in finance. In the context of financial instruments, historical volatility is...

Although, in theory, probabilistic modelling techniques such as Monte Carlo method provides better insights over deterministic models,...

Lambda function lets users create custom made function right inside MS Excel. This is especially very useful while working with array...

Most models go wrong later in their life due to poor update and maintenance practices. Dynamic array models almost eliminate the need for...

Machine learning models are essentially a subset of mathematical models in which computer algorithm determines the relationship between...

Financial models built in spreadsheet with focus on transparency (white-box models) often lack scalability and creates significant...

A financial model is a mathematical representation of a financial phenomenon such as a business performance or pay off of a contract that...