Brian DeChesare

SEPTEMBER 13, 2023

The company still pays interest on the full $1000 and must repay it upon maturity, but you can buy the issuance at a steep discount because there’s a significant chance of default (see: book value vs. market value vs. face value ). A sharply declining stock price does not necessarily mean a company is “distressed.”

Equity 103

Equity Banking EBITDA Start-ups 103

Musings on Markets

JANUARY 31, 2024

Looking at accounting returns, broken down by sector, for US and global companies, here is what 2023 delivered: In both the US and globally, technology companies deliver the highest accounting returns , but these returns are skewed by the accounting inconsistencies in capitalizing R&D expenses.

Equity 80

Equity Book Value Start-ups Corporate Finance 80

Musings on Markets

FEBRUARY 27, 2023

The market debt ratio, in contrast, uses the market's estimate of the value of equity, i.e., its market capitalization, as the value of equity. It is one reason that a banking focus on total assets and market value, when lending to a firm, can lead to dysfunctional lending and troubled banks.

Equity 52

Equity EBITDA Start-ups Net Debt 52

Musings on Markets

JANUARY 6, 2023

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. Price to Book 3. Check rules of thumb : Investing and corporate finance are full of rules of thumb, many of long standing. Cost of Equity 1. PE & PEG 2.

Risk Premium 52

Risk Premium Dividends Start-ups EBITDA 52

Musings on Markets

JULY 22, 2021

The second is the cost of capital, a number that most valuation classes and books (including mine) belabor to the point of diminishing returns. It is a money loser There are good arguments to be made against investing in Zomato at is proposed offering price, but one of the emptiest, and laziest, is that it is losing money right now.

Marketability 99

Marketability Start-ups Equity Price to Book 99

Musings on Markets

JANUARY 5, 2024

Beta & Risk 1. Standard Deviation in Equity/Firm Value 2. Book Value Multiples 3. 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). Return on Equity 1.

Dividends 105

Dividends Risk Premium Equity Book Value 105

Musings on Markets

JANUARY 10, 2025

Beta & Risk 1. Standard Deviation in Equity/Firm Value 2. Book Value Multiples 3. Employee Count & Compensation I nvesting Principle Financing Principle Dividend Principle Hurdle Rate Project Returns Financing Mix Financing Type Cash Return Dividends/Buyback s 1. Return on Equity 1. Debt Details 1. Buybacks 2.

Risk Premium 115

Risk Premium Dividends Start-ups Corporate Finance 115