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Showing posts from May, 2021

Activision- Blizzard - Multiples Analysis

What is Multiples Valuation? It's time to finally come back to doing some more technical analysis. Since it's been a while, I decided to started of with a simple Multiples valuation to get the ball rolling.Multiples Valuation or the multiples approach to valuation is a method of valuating companies based on the belief that similar assets sell at similar prices. In the case of companies, financial ratios that are calculated by dividing the market value of estimated value of a stock by a specific item in the companies' financial reports. Common ratios used in this approach are: Equity value & Enterprise value ratios. Enterprise value multiples include the Enterprise value to sales ratio, EV/EBIT, and EV/EBITDA. Equity multiples are ratios that examine a company's share price with values that underline the company's performance like earnings,or sales. Common ratios include P/E (price-to-earnings ratio), and P/S (price-to-sale ratio). I learned of these ratios and t...

Robinhood is Robbing Who in 2021?

Robinhood has been in hot water for what has felt like all of 2021. Whether it be their controversial decision to freeze GameStop trades and only allow shares to be sold, restricting even more stocks such as NAKD, AMC, and NOK while competitors like TD Ameritrade or Fidelity did not restrict as many , and the Dogecoin boom breaking their app. Such an exhaustive list is obviously going to leave to a leave bad taste in a lot of users' mouths. As someone who sat on the sidelines and witnessed the resentment of Robinhood spew, I wanted to explain the situation to those who would be confused. Understandably, Robinhood users became frustrated as GameStop was soaring by upwards of 14,300% higher over the past few months, even reaching upwards of $483 per share. A lot of this frustration brew inside the finance-meme subreddit r/WallStreeBets, where a majority of its now 10 million subscriber base use Robinhood. The subreddit’s Twitter account stated, “Individual investors are being strippe...