The Equity Risk Premium

The Equity Risk Premium is the premium investors charge for investing in the average risk equity over and above a risk-free investment. The ERP is a dynamic number that varies over time due to changes in …

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The Risk-Free Rate

The risk-free rate is a foundational element of investing. It’s the theoretical rate of return you can get investing in something that is guaranteed and has no risk. It’s a reference point in investing as …

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Micron: Consolidation and Cash Flows

There’s a lot that goes into valuing a company. I’ve valued fast-growing companies in my previous articles. Astute readers may have noticed I discounted the company’s cash flows, but I didn’t explain the method behind …

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Floor & Decor: Decorative Disruption

Founded in 2000, Floor & Decor Holdings is a high-growth, differentiated, multi-channel specialty retailer of hard surface flooring and related accessories. According to their website, they offer the industry’s broadest in-stock assortment of tile, wood, laminate, and …

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Zendesk: Here Comes The Sun

Zendesk is a fast-growing software-as-a-service (SaaS) business that has made a name for itself with small businesses looking for customer support software. I think the market has high hopes for Zendesk yet has still underestimated …

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Twilio: Flexing its Muscles

Have you ever ordered an Uber, signed up for Netflix, booked a stay at an Airbnb, ordered a pizza on the Dominos mobile app, or received a text message after entering a password to verify …

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