Presentation - Understanding Financial By Nour Basem.pdf

Learning finance easily

1. UNDERSTANDING
FINANCE By : Nour Basem

2. Understanding the
importance of finance

3. Why finance is essential
for everyone

4. In smart way Personal finance 3 Smart Ways to Grow Your Money
Don’t let your money sleep
make it work for you 1 2 3 A safe haven to protect your wealth and
hedge against inflation. A safe haven to protect your wealth and
hedge against inflation. Start a Small Business or Side Project
Turn your skills or passion into an
additional income stream. Invest in Gold Buy Shares Start a Small Business

5. Market value Vs fair value The current price at which an asset is bought or
sold.
Market Value A calculated estimate of an asset's true worth
based on fundamentals.
Fair Value Accurate valuation helps investors make informed
decisions regarding buying and selling assets.
Importance of valuation

6. How to calculate
fair value Fair Value per Share =
(Industry P/E × Company EPS) Company Fair Value =
Average Industry EV/EBITDA × Company EBITDA

7. Understanding the
types of finance

8. • Debt Finance

• Equity Finance
• Hybrid Finance
CAPM
Capital Asset Pricing Model
= Rf + beta (Rm - Rf)

9. The three main financial
statements

10. Income Statement Sales , revenue, Expenses
Net profit and Net loss

11. Balance Sheet
Assets , liabilities and equity

12. Cash Flow
Operating, investment
and financing

13. Financial Ratios Explained
Liquidity Ratios
Measure a company's ability to
cover short-term obligations.
01
Leverage Ratios
Evaluate the degree of a
company's debt versus equity.
03
Profitability Ratios
Assess how efficiently a company
generates profit from revenues.
02

14. Main Financial Indicators
Return on Investment (ROI)
ROI measures the efficiency of
an investment's performance.
01
Profit Margin
Profit margin shows how much
profit a company retains.
03
Return on Equity (ROE)
ROE indicates the profitability of
a company’s equity.
02

15. Practical Finance
TipsHere are some essential
tips:
Create a budget to track
expenses
Save at least 20% of your income
Diversify your investments for
stability
Monitor your financial goals
regularly

16. websites to help you Khan
Google finance
Investment.com

17. Thank You! [email protected]