Valutico

APRIL 17, 2023

WACC considers the costs associated with different components of a firm’s capital structure, such as debt, equity, and preferred stock, and weighs them according to their proportion. It is a metric used to calculate the Cost of Capital for a company based on its specific financing mix (debt, equity and/or preference shares).

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Valutico

APRIL 17, 2023

WACC considers the costs associated with different components of a firm’s capital structure, such as debt, equity, and preferred stock, and weighs them according to their proportion. It is a metric used to calculate the Cost of Capital for a company based on its specific financing mix (debt, equity and/or preference shares).

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Valutico

APRIL 12, 2023

WACC considers the costs associated with different components of a firm’s capital structure, such as debt, equity, and preferred stock, and weighs them according to their proportion. It is a metric used to calculate the Cost of Capital for a company based on its specific financing mix (debt, equity and/or preference shares).

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Brian DeChesare

MAY 3, 2023

But people who aim for investment banking roles are very much into those bells and whistles, so questions about the DDM and other “exotic” methodologies began rolling in. To be fair, in some industries – like commercial banks and insurance within FIG – the DDM is a core valuation methodology.

Dividends 64

Dividends Terminal Value Enterprise Value Equity 64

Andrew Stolz

MARCH 20, 2020

A firm uses a mix of equity and debt to minimize the cost of capital. In general, the cost of debt is lower than the cost of equity due to the tax advantage of debt. A firm borrows from banks or bondholders and it has to pay the interest. The popular method to find the cost of equity is the Capital Asset Pricing Model (CAPM).

Beta 52

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

Brian DeChesare

JULY 19, 2023

If you’re interested in long-only hedge funds, you should ask a different set of questions: Do these long-only funds offer any advantages over strategies like long/short equity ? Theoretically, an equity fund could be long-only and manage its risk by buying stocks that are negatively correlated with the market.

Equity 52

Equity Beta Banking Start-ups 52

Brian DeChesare

MAY 24, 2023

Event-Driven Hedge Funds Definition: Event-driven hedge funds bet on specific corporate actions, such as M&A deals, divestitures, spin-offs, bankruptcies, and business reorganizations, and they profit based on changes in the value of a company’s debt or equity after the action.

Equity 64

Equity Start-ups EBITDA Banking 64

Appraisal Rights

JUNE 5, 2017

Further to our prior post about Delaware’s two new appraisal decisions, SWS Group was a small, struggling bank holding company that merged on January 1, 2015 into one of its own substantial creditors, Hilltop Holdings. With regard to beta, the court found fault with both side’s approach. at closing. below the merger price.

Beta 40

Beta Risk Premium Capital Structure Discounted Cash Flow 40

Brian DeChesare

DECEMBER 6, 2023

Beta-Neutral Portfolios: For example, if the S&P 500 goes up or down by 5%, your team’s portfolio should move by ~0%. Pair Trades: To achieve this market neutrality, trades are usually paired so that if you long one company in your universe, you’ll short another company, and the gains come from the spread (more on long/short equity ).

Start-ups 104

Start-ups Beta Marketability Comps 104

Musings on Markets

FEBRUARY 16, 2024

cyclical or commodity companies, that can deliver solid operating and equity values in periods where they operate as going concerns, but face distress or bankruptcy, in the face of a severe recession. Applications : My argument for using implied equity risk premiums is that they are dynamic and forward-looking. two years later.

Risk Premium 77

Risk Premium Start-ups Beta Marketability 77

Musings on Markets

NOVEMBER 1, 2023

To deliver this growth, I did assume that Tesla would have to invest large amounts of capital in capacity, and that this would create a significant drag on value, resulting in a equity value of just under $10 billion. In subsequent valuations, I modified and adapted this story to reflect lessons that I learned about Tesla, along the way.

Start-ups 126

Start-ups Marketability Market Capitalization Equity 126

Brian DeChesare

JULY 27, 2022

Anyone who’s ever traded stocks can understand long/short equity , and even simple global macro trades are easy to explain to the average person. To simplify, we can say that credit hedge funds operate in three main areas: Long/Short Credit – It’s similar to long/short equity , but with bonds rather than stocks. See the example above.

Equity 52

Equity Start-ups Private Equity Firm Beta 52

Valutico

APRIL 25, 2023

The ESG score feeds into our proprietary algorithm to derive an appropriate adjustment to the Cost of Equity and Cost of Debt, which impacts the final valuation. Who is ValutECO for? For very low ESG scores, the algorithm will apply a Cost of Capital premium, increasing the overall Cost of Capital and thus decreasing the valuation.

Discounted Cash Flow 52

Discounted Cash Flow Beta Alpha Equity 52

Valutico

APRIL 25, 2023

The ESG score feeds into our proprietary algorithm to derive an appropriate adjustment to the Cost of Equity and Cost of Debt, which impacts the final valuation. Who is ValutECO for? For very low ESG scores, the algorithm will apply a Cost of Capital premium, increasing the overall Cost of Capital and thus decreasing the valuation.

Discounted Cash Flow 52

Discounted Cash Flow Beta Alpha Equity 52

Benzinga

JULY 26, 2022

July 26, 2022 (GLOBE NEWSWIRE) -- First National Corporation (the "Company" or "First National") (NASDAQ: FXNC ), the bank holding company of First Bank (the "Bank"), reported unaudited consolidated net income of $3.8 Return on average equity was 15.04%. STRASBURG, Va., million, or $0.61 This compares to net income of $3.3

Banking 40

Banking Dividends Marketability Equity 40

Appraiser Newsroom

JUNE 4, 2024

Everett is the author of the children’s financial literacy thriller Toby Gold and the Secret Fortune, which incorporates such financial topics as saving, investing, banking, entrepreneurship, interest rates, return on investment, and net worth. Petersburg, Russia. Tax Valuation Services.

Business Valuation 59

Business Valuation Intangible Assets Appraisal Finance 59

Brian DeChesare

AUGUST 10, 2022

With the possible exception of FIG , oil & gas investment banking generates the highest number of panicked emails and questions. But before delving into the exit opportunities and the long-term outlook, let’s start with the fundamentals: Oil & Gas Investment Banking Defined. Recruiting into Oil & Gas Investment Banking.

Banking 98

Banking EBITDA Dividends Equity 98

Musings on Markets

JULY 13, 2022

Country Risk: Equity Risk For equity investors, the price of risk is captured by the equity risk premium, and equity risk premiums will vary across countries. Please do not attach any political significance to my country groupings, or take them personally.

Risk Premium 103

Risk Premium Risk-free Rate Start-ups Equity 103

Musings on Markets

FEBRUARY 27, 2023

To fund the business, you can either use borrowed money (debt) or owner's funds (equity), and while both are sources of capital, they represent different claims on the business. Even government-owned businesses fall under its umbrella, with the key difference being that equity is provided by the taxpayers.

Equity 52

Equity EBITDA Start-ups Net Debt 52

Musings on Markets

JANUARY 31, 2024

In my last three posts, I looked at the macro (equity risk premiums, default spreads, risk free rates) and micro (company risk measures) that feed into the expected returns we demand on investments, and argued that these expected returns become hurdle rates for businesses, in the form of costs of equity and capital. trillion ($1.8

Equity 81

Equity Book Value Start-ups Corporate Finance 81

Global Finance

SEPTEMBER 5, 2024

In Brazil, the Pix payment system lets people, corporations, and governments transfer and accept funds instantly, 24 hours a day—even when banks are closed. BTG Pactual created boostLAB in 2018 to help the bank become a destination for tech companies banking in Latin America. In exchange, BTG Pactual received 3% equity.

Banking 52

Banking Finance Technology Start-ups 52

Global Finance

JUNE 4, 2024

In keeping with its intense focus on introducing cutting-edge digital infrastructure to its finance and banking systems, India in March became the first among major global financial market to implement T+0 settlement on its stock exchanges. Equity trades will now be settled on the same day they are made.

Start-ups 52

Start-ups Beta Banking Finance 52

Musings on Markets

FEBRUARY 8, 2025

The Hurdle Rate - Intuition and Uses You don't need to complete a corporate finance or valuation class to encounter hurdle rates in practice, usually taking the form of costs of equity and capital, but taking a finance class both deepens the acquaintance and ruins it. Corporate Default Risk , i.e,

Risk Premium 73

Risk Premium Beta Start-ups Equity 73

Musings on Markets

JANUARY 10, 2025

Thus, as you peruse my historical data on implied equity risk premiums or PE ratios for the S&P 500 over time, you may be tempted to compute averages and use them in your investment strategies, or use my industry averages for debt ratios and pricing multiples as the target for every company in the peer group, but you should hold back.

Risk Premium 120

Risk Premium Dividends Start-ups Corporate Finance 120

Value Scope

SEPTEMBER 24, 2020

TCFD provides recommended disclosures for these four areas and guidance on how to implement the recommendations for the financial sector ( banks, insurance companies, asset managers, asset owners) and the non-financial sector (energy, transportation, materials and buildings, and agriculture, food and forest products).

Intangible Assets 130

Intangible Assets Alpha Beta Marketability 130