DCF = FCF/(Discount Rate)
How do I calculate the nasdaq?
The NASDAQ is calculated using the discounted cash flow (DCF) model, which involves projecting future cash flows of a company and then discounting them to today's value. This is done by calculating
the present value of future cash flows, which is then discounted to today's value. For example, if the future cash flow for a company is estimated to be $1,000 at the end of the year, and the discount rate is 10%, then the present value of that cash flow would be $909.09 (calculated as $1,000 / (1 + 10%)). The total value of the DCF is then the company's equity value. By using this method, investors can accurately assess the value of a company and make informed decisions when investing.
What is NASDAQ?
The NASDAQ is a global electronic marketplace for buying and selling securities, as well as the benchmark index for U.S. technology stocks. It was the world's first electronic stock market and is home to many of the tech industry's most high-profile companies.
What does NASDAQ stand for?
NASDAQ originally stood for the "National Association of Securities Dealers Automated Quotations." However, today the acronym is used as a standalone term and no longer represents the full original name.
What is the difference between the NASDAQ and the NYSE?
The NASDAQ and the New York Stock Exchange (NYSE) are both securities exchanges, but they operate differently. The NASDAQ is a dealer's market, where market participants trade with each other via a dealer network, and it is known for being the exchange of choice for technology companies. The NYSE, on the other hand, is an auction market, where individuals directly buy and sell securities to each other on the trading floor, and it lists a wide variety of companies from diverse industries.