February 28, 2023 – Page 2 – Finance, Tech & Analytics Career Resources

Financial Valuation Analysis: Market Price Vs. Intrinsic Value

Posted on February 28, 2023April 6, 2024 by Imarticus Learning

Building a robust business valuation requires determination, commitment and a high level of customer service. There are several ways of financial valuation of a business. The two we will discuss here are market value and intrinsic value.

As we learn financial analysis, we will always find fans of either of the two concepts with their logic. However, it is critical to understand the totality of concepts to judge each financial valuation concept’s importance and suitability in applicable cases.

These concepts are usually used to value a company and its stock price. Here is all you need to know about the market price and intrinsic value:

What is the market price?

As the name suggests, the market price is the price of the stock in the market. The process of demand and supply determines this price. If the company shares receive strong demand from the public, its market price will go beyond its book value. It is because there are people in the market looking to buy stock in demand.

With the ever-changing demand and supply equation, overvaluation and undervaluation are normal occurrences in the market. It doesn’t mean that a stock should be bought, sold or considered for either of the two in case it is overvalued or undervalued.

The market price of a stock is an indicator of the market’s current behaviour toward the stock. If the price increases, there is more demand for the stock compared to supply and vice versa.

What is Intrinsic Value?

Intrinsic value is also known as book value. Intrinsic value is the total value of an organisation’s assets after deducting the total liabilities. It may seem like a simple calculation in theory, but a business may own tangible and intangible assets with an ever-changing valuation in the real world.

For instance, a business may own office buildings, machinery, factories etc. At the same time, patents, copyrights, and goodwill are the intangible assets of an organisation. Tangible assets depreciate consistently and can change in value with the economy and consumer tastes. Intangible assets like the value of goodwill can change with one crisis for the business.

Similarly, the value of patents and copyrights can change with the value they bring to the table.

Intrinsic value is a type of fundamental financial analysis of a company. There are various models like discounted cash flow and current liquidation value to arrive at the intrinsic value of an organisation.

Difference between Intrinsic Value and Market Price

Both concepts – Intrinsic Value and Market Price – are two different models of financial accounting and valuation that are used in specific cases. It is important to have clarity on both to have a clear picture of operations. Here are the key differences between intrinsic value and market price:

For an investor

From an investor’s perspective, it is better to have a strong intrinsic value than a market price. If the intrinsic value of a business is high, investors view it as a good investment opportunity.

For a company

It is easier to find a publicly listed company’s market value than a private company. For an organisation, both these are different ways to value the business. Intrinsic value is the estimate of the actual value of the organisation that is separate from how the market values it.

Application

The basic application of concepts can be applied to the buying and selling of assets. For instance, when the intrinsic value of an asset is high compared to its market price, the asset should be bought. Similarly, when the intrinsic value of an asset is low and the market value is high, the asset should be sold.

What is the price-to-book ratio?

There is hardly a scenario where the intrinsic value will be equal to the market price for a long time. As these concepts are valid and can operate independently, both these values will likely differ.

The difference between intrinsic value and market price is known as the price-to-book ratio. In the price-to-book ratio, the price is the current value of the stock in the market and book value is the price that an investor would receive if the company is liquidated.

Concepts like this and many others have been explained in-depth in the Financial Analysis Prodegree Course from Imarticus Learning. The course has been launched in collaboration with KPMG in India and offers to teach job-relevant skills in financial analysis and valuation. Covering concepts like accounting and financial modelling, valuation and corporate strategy, equity research, M&A, and Job readiness, the financial analysis and valuation course helps you excel in your career with practical teaching and active participation.

How to leverage fintech capabilities to create value in your finance career

Posted on February 28, 2023April 6, 2024 by Imarticus Learning

Industries are becoming dependent on technology. The finance industry is no exception. The pace at which fintechs are registering growth is amazing. They have transformed how we do banking, avail insurance services or make investments. The rise of fintechs benefits customers who are now getting efficient financial services. But it is also beneficial for job seekers and those with careers in finance. Fintechs are presenting newer opportunities. We need to develop important finance skills to change careers.

One of the best ways is to enrol in a fintech program. But before that, let’s learn about the skills you need to create value in your finance career.

Important Skills to Leverage Fintech Capabilities

Here are some of the important skills you need for a career in the FinTech world:

Use of Technology

We need to develop our tech knowledge to prosper in the fintech industry. It’s not limited to certain tools and techniques. Behind a fintech, there are various technologies in play. This includes Application Programming Interface (API), Artificial Intelligence (AI), Machine Learning (ML), cloud computing, IoT etc. It is important to understand the use of these technologies. You need to learn how they help fintechs revolutionise financial services.

Learning Everyday Tools Like Advanced Excel

Another important skill is to learn everyday tools like advanced excel. Excel is one of the most used tools in any industry. The formulas in excel can automate calculations. You need to know how to use formulas and keyboard shortcuts. It creates great value in your workspace.

Leverage Financial Modelling

Financial models allow companies to learn about historical performance, current financial situation, etc. It helps them assess and make accurate predictions. This helps to get deep insights into the current financial situation. One can measure performance against previous graphs.

Data Visualisation

Data visualisation is nothing but visualising the data to derive meaningful conclusions. Here, data is transformed into engaging visuals. It offers a snapshot of the information. It helps the users understand the data better. Learning about data visualisation can help you add great value.

Understanding Fintech

The above skills can be useful to add value to our finance career. But what is more important is a thorough understanding of how fintech work. Fintechs are revolutionising the financial services industry. The way they operate is different from the conventional financial service organisations. We can learn more about fintechs through the following modes:

a) Certificate in Finance and Technology

These are academic programs with a key focus on the fintech environment. These fintech programs can provide deep insights into how the fintechs operate. You learn about current challenges, emerging technologies, etc. It prepares us for future roles in this industry holistically.

b) Employment in a Fintech Company

What could be more beneficial than gaining practical experience in fintech? Job in fintech companies allows us to understand the fintech industry at the ground level. We learn about the various challenges that fintechs face and how they overcome them. Further, we also learn how the fintechs are coping with changing technology, industry and regulatory environment. It allows us to put the academic knowledge gained in the fintech program into practical use.

Best Fintech Courses in India

Both the above ways of understanding fintechs are important. The former focuses on enhancing our knowledge. The latter focuses on providing practical insights. The finance and technology certificate is a gateway to entering the fintech industry. Leverage your fintech capabilities to create value in your finance career with proper knowledge.

Imarticus Learning offers Professional Certificate in Fintech. It was designed with the SP Jain School of Global Management. It is Asia’s premier fintech program and one of the best fintech courses in India. It empowers you through a comprehensive curriculum with real-world case studies. You get hands-on training from industry experts and practical projects. It also offers opportunities to interact with leading fintech entrepreneurs and leaders.

This course has everything from strategy to hands-on training for using various technologies. Further, we also get to implement our learning through a visionary fintech project that can bring a paradigm shift in business operations. It’s time we adapt to the changing financial environment and leverage fintech capabilities to prosper in our finance careers.

Training-on-the-go: Marketing Blueprint for Long-Term Social Media Success

Posted on February 28, 2023April 6, 2024 by Imarticus Learning

Building a robust presence on social media platforms is a necessity for businesses. Popular social media platforms like Facebook, Instagram, Twitter, YouTube, Snapchat, etc., continue to attract a large user base that engages and interacts with each other.

On average, global internet users spend around 2 hours and 27 minutes daily on various social media platforms. Therefore, it has become necessary for brands to set up and manage social media marketing teams with the expectation that the business can create a lasting impact on these social media platforms.

Building a career in social media marketing requires structured social media marketing training. Effective use of social media is usually part of any robust digital marketing online training or digital marketing certification course.

After having gained structured learning to use social media for business success effectively, the focus should be on developing a marketing blueprint for long-term social media success.

Here is how to focus on developing a marketing blueprint for long-term social media success:

What is a marketing blueprint?

A marketing blueprint helps a business improve the customer experience by understanding the promises and values of the brand. All businesses must have a marketing blueprint as it helps create a roadmap or a timetable that puts across the marketing goals for the business along with the target timeline.

A marketing blueprint is also essential because it helps identify activities’ impact in achieving the brand’s marketing vision and the possible challenges that need to be tackled.

How to create a marketing blueprint for long-term social media success?

Building a marketing blueprint for long-term social media success requires a business to clearly understand the goals and what it means to be successful on social media. For one brand, it can be about the likes and followers, while another may focus on engagement or conversions from social media.

We can follow the following steps to create a marketing blueprint for long-term social media success:

Set the right goals

Setting the right goals from the very start to stay focused as the social media strategy unfolds on various platforms is critical. Digital marketers should decide on goals like engagement, follower count, conversion, etc., at the start of creating an efficient blueprint.

Establish values and promises

Once the team is clear about the goals set for the social media efforts, it is time to decide on the values and promises the brand wants to be known for. This can be an extension of the overall marketing strategy where the same values and commitments are followed on social media platforms. It will also help them decide on the brand tone and messaging on social media platforms providing an omnichannel experience to the consumers.

Focus on the target audience

As the users on social media platforms have a short attention span, it is critical to focus on the right target audience to grow the brand’s influence among the target consumers. With the right target group in focus, marketing efforts can gain good results in the early phase itself.

Build brand awareness

After identifying the target audience, it is time to grow brand awareness by building content that resonates with them. Avoid creating promotional content in this phase and build solid brand awareness.

Grow the audience

It is equally important to grow the audience as it will make more people aware of the brand and its efforts. One efficient way is by relying on monitoring and listening techniques to understand the various topics, trends, and hashtags relevant to the business and industry. With a deep understanding of how to grow the brand’s core audience, teams can set social media efforts for long-term success.

Boost engagement

After companies achieve a sizeable audience, depending on the size of the business and industry, it is time to align efforts to boost engagement within the community. Having a smaller but engaged community on social media is better than having a large following without real engagement.

Generate leads and sales

Use social media efforts to build a consistent pipeline of leads and sales for the business. Once digital marketers have created a sustained community of engaged followers, it is the right time to start pushing promotional content that helps build leads and sales for the business.

The steps outlined above can help create a marketing blueprint for a brand’s long-term success on social media.

Our Postgraduate Program in Digital Marketing helps explain several insightful concepts and case studies.

The various modules in Imarticus Learning digital marketing certification course can help better understand how to create a lasting impact on social media and other digital platforms. The course helps provide digital marketing online training, including social media marketing training and the different facets of digital marketing, and how to use it efficiently for business success.

11 Innovative Ways to Improve Data Visualisation

Posted on February 28, 2023April 5, 2024 by Imarticus Learning

Organisations gather a huge volume of data each day. This data, in its raw form, is messy and unstructured. It conveys no meaning. One can find patterns and trends only when refined and presented in a certain way. Data visualisation helps in doing so. The process transforms an unrefined and raw dataset into a form that can be understood and provides insightful information. Thus, data visualisation enables data scientists to deliver the story they want to convey using the data.

As with any form of storytelling, data visualisation requires creativity, design skills and the ability to explain the information most simply and efficiently as possible. Data analysts use several strategies to ensure that their data sends a clear and compelling message. One can learn these strategies as part of data analyst training.

Some of the best ways to improve data visualisation are listed below:

Decide the message you want to convey.

You should clearly know what you want your audience to take away from the visualisation. A dataset means nothing to a viewer until you give it meaning. Once you know what you want your data to stand for, you can design and present it that way.

Clean up and understand your dataset.

A thorough analysis of the dataset is essential before it can be visualised. Clean up your dataset and eliminate elements that do not contribute meaning, particularly when dealing with a large dataset. Only when you reach a conclusion based on the data can you convey it to others.

Choose the best graph type for your data.

Different charts and graphs are used to depict different forms of data. For instance, a line plot is used to show numerical trends over time, a bar graph is used to compare data values within the same category, and a pie chart shows the proportional distribution of data points within a specific category. Depending on your data and what you want to do with it, you can find which graph fits it best.

Keep things simple.

Choose simple charts and structure your data in a way that’s easy to understand. The better you know something, the more simply you can explain it.

Pay extra attention to the text.

You can neither make your visualisation completely text-free nor fill it with redundant text. Your visualisation usually has a title, label and legends. A title needs to be precise and easily understandable. Labels should also be simple and readable. Legends must be thought carefully as they should make understanding graphs easier.

Use colours in the right way.

Colours are an essential component of visualisation. Depending on how you use it, they can either enhance your visualisation or make it confusing. Avoid using too many colours and the same colour for the same data.

Keep your audience in mind.

The type of audience will impact the design of data visualisation. Depending on the audience’s familiarity with the subject, you will decide the level of explanation required and the design elements to be used. For instance, charts for internal stakeholders will look different from those designed for external audiences.

Reduce density.

Don’t try to cram everything on one chart. If there is too much information or too complex, illustrate it using more than one chart. Use whitespaces to help your readers focus and comprehend the information better.

Make use of dynamic visualisation.

Using dynamic visualisation can make your data highly insightful. Interactive visualisations where the viewers can remove some categories of data can help them understand the graph better. Gifs can also be used to depict the same base graph over different periods or conditions to demonstrate changes in the data.

Reduce dimensions.

When several dimensions are shown in the graph depicting different measurements for each data point, it will only confuse the audience. They will find it difficult to find or understand patterns. Thus, use a few dimensions to convey the meaning of your dataset.

Mention the source of the data.

Include the link to the original dataset to make your data visualisation as unbiased and objective as possible. Be honest about the assumptions you made, the data that was omitted and how you reached a particular conclusion.

The skill of data visualisation is essential to learn for data scientists. The data they gather and analyse can be of use to people only if appropriately designed.

At Imarticus Learning, we offer the perfect Data analytics course with placement. Our Postgraduate Program in Data Analytics and Machine Learning focuses on data visualisation with Tableau and PowerBI and other job-relevant skills. All graduates and professionals (up to 5 years of experience) with a technical background are eligible to apply.

Apply now to begin your journey as a data expert.