Exploring the future of financial data architecture: AI-native financial data foundation, large-scale financial data processing, and enterprise data quality & governance.
Tag: Valuation
The Residual Income Model is one of the equity valuation methods covered in the CFA Level 2 curriculum. This method estimates the intrinsic value of a stock based on the stock's current book value, plus the present value of expected future residual income. Residual income represents the income generated by the company in excess of … Continue reading General Residual Income Model for Equity Valuation
In the previous blog post, we explored the historical approach for estimating the Equity Risk Premium (ERP). The historical approach is a widely used method that is simple to implement. However, it relies on the assumption that the future will resemble the past, which often does not hold true in financial markets. In this blog post, we will … Continue reading Equity Risk Premium Estimates using Forward-Looking Approach
In this blog post, I will begin exploring the topic of equity valuation, one of the most emphasised areas in the CFA Level 2 curriculum. Before delving into the various equity valuation models, I intend to use this and the next few blog posts to discuss how to estimate the equity risk premium (ERP) and … Continue reading Equity Risk Premium Estimates using Historical Approach
Mark-to-Market (MTM) is the process of valuing an asset, liability, or financial instrument, such as a forex forward contract, at its current market price rather than its book value or historical cost. The calculated MTM value represents the profit or loss that would be realised if the contract were settled at the current market exchange … Continue reading Mark-to-Market of Forex Forward Contract
In this blog series, I will aim to code the formulas and model algorithms covered in the CFA Level 2 program using Python and DolphinDB. Each topic will begin with a brief explanation of the formulas or algorithms, followed by their implementations in Python and DolphinDB. A currency swap is a financial agreement where two … Continue reading Currency Swap Pricing and Valuation
In this blog series, I will aim to code the formulas and model algorithms covered in the CFA Level 2 program using Python and DolphinDB. Each topic will begin with a brief explanation of the formulas or algorithms, followed by their implementations in Python and DolphinDB. An Interest Rate Swap (IRS) is a financial derivative … Continue reading Interest Rate Swap Pricing and Valuation
In this blog series, I will aim to code the formulas and model algorithms covered in the CFA Level 2 program using Python and DolphinDB. Each topic will begin with a brief explanation of the formulas or algorithms, followed by their implementations in Python and DolphinDB. This blog post focuses on pricing and valuing forward … Continue reading FRA Pricing & Valuation
This blog post focuses on pricing and valuing forward contracts for underlying assets with or without carry costs and benefits, as well as pricing stock index forward contracts. In this blog series, I will aim to code the formulas and model algorithms covered in the CFA Level 2 program using Python and DolphinDB. Each topic … Continue reading Forward Contract Pricing & Valuation
Data Ninjago (Financial Data Architecture) 
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