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

IBG Business

NOVEMBER 30, 2022

Appraisal educators state that all value is a prophesy of the future. Value calculations are efforts to try to consider the past and the future to determine the “value” of a business. Value to a buyer presupposes that the seller’s earnings will be effectively transferred to the buyer for the future.

EBITDA 52

EBITDA EBIT Book Value Marketability 52

FE International

DECEMBER 31, 2021

A DCF should be a serious consideration for investors appraising mature, stable businesses with predictable cashflows. That is, were the companies in those transactions valued as a multiple of EBIT , EBITDA , revenue, or some other parameter? How to Value an Advertising Business. How to Value an Affiliate Business.

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Business Valuation Precedent Transaction Analysis Start-ups 52