5. Dunning Kruger effect
5.1 – Understanding medical declarations, pre-existing diseases and loading charge This chapter is authored by Shrehith from Ditto. The Dunning–Kruger effect is a hypothetical cognitive bias that alludes...
4. Skin in the game
4.1 – Understanding co-payment and room rent restrictions This chapter is authored by Shrehith from Ditto. Skin in the game — It’s an idea propounded by many people,...
3. The nudge
3.1 – Understanding protection, cover amount and premiums This chapter is authored by Shrehith from Ditto. An average human spends about 8 hours of his day...
2. Perverse Incentives
2.1 – Filling the application right This chapter is authored by Shrehith from Ditto. A few months ago, a young chap came to us seeking help — completely...
1. Introduction
1.1 – Overview This chapter is authored by Shrehith from Ditto. Most people in this country live on a tight budget. They don’t have a large...
18. Discounted Cash Flow Analysis (DCF)
18.1 – Recap We started chapter 1 with an introduction to financial modeling. I did talk about how financial modeling is always taught to students in a...
17. Weighted average cost of capital and Terminal Growth
17.1 – Recap As far as the theoretical concept of valuation is concerned, we are now almost at the end of it. In this chapter,...
16. Valuation (Part 3) – Risk Premium & Tax Shield
16.1 – Market risk premium In the previous chapter, we discussed that the equity holders expect a higher return than the debt holders. The higher...
15. Valuation (Part 2) – FCFF & FCFE
15.1 – Building blocks Picking up from the previous chapter, we discussed relative and absolute valuation concepts. At its core, three key inputs drive...
14. Valuation (Part 1) – Overview
14.1 – Valuations basics We are at the last stage in our Financial Modelling journey. As the last step, we have to build a valuation...