Musings on Markets

FEBRUARY 27, 2022

That said, about 31% of the net profits of all publicly traded firms listed globally in 2021 were generated by financial service firms; that percent is lower in the US and higher in emerging markets. To make comparisons, profits are scaled to common metrics, with revenues and book value of investment being the most common scalar.

Start-ups 99

Start-ups Equity Book Value Marketability 99

Musings on Markets

OCTOBER 6, 2023

One way to measure progress on this issue is to look at the portion of the book value of equity at US companies that comes from tangible assets, in the chart below: Looking across all US firms from 1980 to 2022, the portion of book value of equity that comes tangible assets has dropped from more than 70% in 1998 to about 30% in 2022.

Intangible Assets 126

Intangible Assets Book Value Equity Start-ups 126

Valutico

DECEMBER 15, 2022

The ratio used might be EV/EBITDA, EV/Sales, P/E or another, depending on the valuation performed and the type of business being valued. The ratio is then used in a simple multiplication calculation, to determine the value of the company in question. Broadly, there are two different common ways to value using multiples. .

Precedent Transaction Analysis 52

Precedent Transaction Analysis EBITDA Comparable Company Analysis Enterprise Value 52

Valutico

DECEMBER 15, 2022

The ratio used might be EV/EBITDA, EV/Sales, P/E or another, depending on the valuation performed and the type of business being valued. The ratio is then used in a simple multiplication calculation, to determine the value of the company in question. Broadly, there are two different common ways to value using multiples. .

Precedent Transaction Analysis 52

Precedent Transaction Analysis EBITDA Comparable Company Analysis Enterprise Value 52

Musings on Markets

JANUARY 5, 2024

Standard Deviation in Equity/Firm Value 2. Book Value Multiples 3. EBIT & EBITDA multiple s 5. Working capital needs Thus, I compute pricing multiples based on revenues (EV to Sales, Price to Sales), earnings (PE, PEG), book value (PBV, EV to Invested Capital) or cash flow proxies (EV to EBITDA).

Dividends 105

Dividends Risk Premium Equity Book Value 105

Musings on Markets

JANUARY 31, 2024

The second is that the sanctions imposed after 2021 on doing business in Russia drove foreign competitors out of the market, leaving the market almost entirely to domestic companies. The first is the preponderance of natural resource companies in this region, and energy companies had a profitable year in 2023.

Equity 80

Equity Book Value Start-ups Corporate Finance 80

Musings on Markets

JANUARY 6, 2023

By the same token, it is impossible to use a pricing metric (PE or EV to EBITDA), without a sense of the cross sectional distribution of that metric at the time. For example, I have seen it asserted that a stock that trades at less than book value is cheap or that a stock that trades at more than twenty times EBITDA is expensive.

Risk Premium 52

Risk Premium Dividends Start-ups EBITDA 52