Topics Covered
#1:
Overly optimistic revenue forecasts
#2:
Underestimating expenses causing unrealistic profit
#3:
Growing fixed assets slower than revenue
#4:
Confusing growth Capex with maintenance Capex
#5:
Forecasting drastic changes in the cash conversion cycle
#6:
Underestimating working capital investment
#7:
Valuing a stock using the calculated beta
#8:
Choosing an unreasonable cost of equity
#9: Not properly fading return on invested capital