Finance
9 validated OpenCM causal models in the finance domain.
Altman Z-Score (Bankruptcy Risk)
Edward Altman's formula for predicting the probability that a firm will go into bankruptcy within two years.
Used for: Bankruptcy risk screening for a credit-committee review +3 more
Black-Scholes Causal Chain
Models the causal impact of underlying asset price, strike price, volatility, and time to expiry on option pricing.
Used for: Sensitivities (Greeks) for an options book +3 more
CAPM Asset Pricing
Capital Asset Pricing Model — causal structure linking systematic risk, market conditions, and expected returns.
Used for: Cost-of-equity calculation for a DCF +3 more
DCF Value Drivers
Discounted Cash Flow value driver tree — causal decomposition of how revenue growth, margins, and capital efficiency drive intrinsic firm value.
Used for: Intrinsic valuation of a target company +3 more
Dividend Signaling
Models the causal impact of dividend changes on market perception of future earnings and stock price.
Used for: Interpreting a sudden dividend hike or cut as a signal +3 more
DuPont Analysis
Decomposes Return on Equity (ROE) into three causal drivers: profit margin, asset turnover, and financial leverage.
Used for: Decomposing ROE into margin, turnover, and leverage +3 more
Real Options Valuation
Strategic flexibility framework for valuing the right (but not the obligation) to expand, defer, or abandon projects.
Used for: Valuing a deferred R&D investment +3 more
WACC Optimization
Models the causal drivers of the Weighted Average Cost of Capital (WACC), balancing cost of equity and debt.
Used for: Capital-structure decisions (debt vs. equity) +3 more
Working Capital Cycle
Cash conversion cycle model — how inventory, receivables, and payables management causally drive liquidity and operational efficiency.
Used for: Cash-conversion-cycle benchmarking for a CFO +3 more