Fixed are things like rent that you have to pay come what may and Variable is things like the cost of the metal that you need to make your widgets. And accountants include “non-cash” items like Depreciation in this category.
Costs can be Fixed or Variable.
A core method we, as equity analysts, use to calculate and estimate the present value of the companies we invest into on behalf of clients is the discounted cash flow model (DCF).
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