Musings on Markets

JANUARY 19, 2022

In a post at the start of 2021 , I argued that while stocks entered the year at elevated levels, especially on historic metrics (such as PE ratios), they were priced to deliver reasonable returns, relative to very low risk free rates (with the treasury bond rate at 0.93% at the start of 2021).

Risk Premium 98

Risk Premium Risk-free Rate Start-ups Equity 98

IVSC

JUNE 12, 2023

She was also a contributing author to the chapter "Risk-Free Rate" in the fifth edition. Alexander joined the IVSC as Director of Technical Standards (Tangible Assets) in 2019. She is a co-author of the Kroll Valuation Handbook series, now available exclusively online in the Cost of Capital Navigator.

Risk-free Rate 130

Risk-free Rate Intangible Assets Appraisal Business Valuation 130

ThomsonReuters

MAY 6, 2021

The Codification often provides guidance on how to select a discount rate for a particular area of accounting. The Codification may require the use of a risk-free rate in some places and a risk-adjusted rate in others. Recent events have also impacted the components of the discount rate.

Discounted Cash Flow 52

Discounted Cash Flow Risk Premium Risk-free Rate Intangible Assets 52

Andrew Stolz

MARCH 20, 2020

This is a Valuation Master Class student essay by Teeradon Piyakiattisuk from March 19, 2019. The formula implies the return an investor expects from a risk-free investment plus the return from the stock in relation to market volatility. The market risk premium is calculated from a market rate of return less a risk-free rate.

Beta 52

Beta Capital Structure Risk-free Rate Weighted Average Cost of Capital 52

Musings on Markets

JANUARY 21, 2023

trillion on their market capitalization at the end of 2019. To close this post, I revisited my valuation of the S&P 500 on September 23, 2022, and since much of last year's changes to the risk free rate, earnings expectations and the equity risk premium had happened by then, my value of the index has not changed much.

Equity 93

Equity Risk Premium Start-ups Dividends 93

Musings on Markets

NOVEMBER 9, 2021

My two most recent valuations were in June 2019 and January 2020, and I am going to go back to them, not just because they are recent, but because they led to investment decisions on my part. In June 2019, Tesla had hit a rough spot, partly due to concerns about production bottlenecks and debt, and partly due to self inflicted wounds.

Start-ups 101

Start-ups Dividends Marketability Market Capitalization 101

Musings on Markets

JANUARY 26, 2023

Just as impressively, the company finally started delivering on its promise of profitability, going from barely making money in 2019 to an operating margin of 16.57% in 2022. billion, a remarkable achievement by itself, but COVID gave the company a boost, as revenue have increased about 250% in the 2020-22 time-period.

Start-ups 98

Start-ups Marketability Risk Premium Equity 98