Corporate Finance

Corporate finance is a field of finance that deals with the financial decisions made by corporations and their impact on the company’s value. In equity research, corporate finance involves analyzing a company’s financial statements, capital structure, cash flow, and investment opportunities to determine its financial health and potential for growth.

Analysts use various methods to evaluate a company’s financial health, including ratio analysis, discounted cash flow analysis, and valuation multiples. These methods help analysts assess a company’s profitability, liquidity, solvency, and efficiency, among other factors. Corporate finance also includes the study of capital markets, including equity and debt markets, and the various sources of financing available to companies. Analysts must understand the cost of capital and the various capital structure decisions companies can make, such as issuing stock or bonds or taking on debt.

Corporate Finance