Musings on Markets

FEBRUARY 8, 2022

At the risk of provoking the ire of those who dislike portfolio theory, the most widely model for risk, in practice, is the capital asset pricing model, and beta is the relative risk measure. At the start of 2022, the ten sectors (US) with the highest and lowest relative risk (unlettered betas), are shown below.

Risk Premium 69

Risk Premium Beta Start-ups Equity 69

Startup Valuation Blog

AUGUST 2, 2022

An angel investor is an individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity in the company. Is there any dead weight such as ex-employees or work-for-equity dev shops? The Ultimate Angel Investors Checklist. Return on investment. Early Traction.

Beta 100

Beta Equity Marketability Banking 100

Valutico

FEBRUARY 27, 2024

Different types of discount rates such as risk-free rate, cost of equity, or cost of debt, are used contextually in financial analysis. Cost of Equity: The cost of equity represents the return required by equity investors to compensate them for the risk of owning a company’s shares.

Discounted Cash Flow 52

Discounted Cash Flow Risk Premium Risk-free Rate Beta 52

Musings on Markets

MAY 20, 2022

In my last post , I discussed how inflation's return has changed the calculus for investors, looking at how inflation affects returns on different asset classes, and tracing out the consequences for equity values, in the aggregate.

Price to Book 98

Price to Book Dividends Beta Equity 98

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

JUNE 29, 2022

If you’re thinking about exit opportunities and can’t decide between private equity and hedge funds , activist hedge funds might be your solution. Similar to private equity firms, they operate on longer time frames, influence companies’ operations and finances, and might catalyze major changes, such as spin-offs or acquisitions.

Private Equity Firm 52

Private Equity Firm Equity Start-ups Banking 52

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. The cost of equity (Ke) is an expected return that a firm pays to an equity investor to compensate for the risk of investing capital.

Beta 52

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

Global Finance

JUNE 4, 2024

Equity trades will now be settled on the same day they are made. Even as India moves to same-day settlement, Indian regulators, exchanges, and clearing houses have already started pushing further, beta testing for real-time settlement, expected to be realized next year. US exchanges are transitioning to T+1 from a T+2 cycle.

Start-ups 52

Start-ups Beta Banking Finance 52

Brian DeChesare

SEPTEMBER 13, 2023

Ask anyone interested in distressed debt hedge funds for “the pitch,” and they’ll probably mention one of the following: “It’s like long/short equity or credit , but more interesting!” Distressed investing offers equity-like returns with lower risk.” Distressed assets offer non-correlated returns, similar to global macro.”

Equity 103

Equity Banking EBITDA Start-ups 103

Benzinga

JANUARY 12, 2024

billion a year ago, led by market beta on average AUM, positive organic base fee growth, and higher securities lending revenue. BlackRock Inc (NYSE: BLK ) reported Q4 FY23 revenue growth of 7% Y/Y to $4.631 billion, marginally above the consensus of $4.627 billion. billion from $3.40

Dividends 52

Dividends Beta Technology Marketability 52

Brian DeChesare

MAY 3, 2023

And it values the company today based on the present value of its dividends and that potential future value (either the stock price or the Equity Value via the Terminal Value calculation). And Equity Real Estate Investment Trusts (REITs) must distribute almost all their Net Income, so the DDM can work well in REIT valuations.

Dividends 64

Dividends Terminal Value Enterprise Value Equity 64

Brian DeChesare

NOVEMBER 9, 2022

Traditional investment banking exit opportunities such as private equity , venture capital , and corporate development are highly unlikely , with a few exceptions for certain desks. You will not be competing with investment bankers or equity research analysts because they do not have the skill sets required for global macro.

Banking 93

Banking Equity Start-ups Marketability 93

Brian DeChesare

AUGUST 31, 2022

Convertible bonds are hybrid instruments with elements of debt and equity, and some groups that trade convertible bonds also combine elements of S&T and IB. If you’re using a strategy like long/short equity , you could long or short a company’s stock, and your results would depend heavily on the stock market’s overall direction.

Banking 88

Banking Risk-free Rate Equity Start-ups 88

Equidam

FEBRUARY 1, 2024

As venture studios “earn” their equity via services and support provided, starting out with a large amount of relatively ‘cheap’ ownership (15-80%, depending on the model), it can make sense to cash-in sooner and reinvest the capital in new ventures.

Beta 72

Beta Finance Equity Marketability 72

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 74

Risk Premium Start-ups Beta Marketability 74

Appraisal Rights

JUNE 5, 2017

In selecting the appropriate equity risk premium, the court observed that whether to use supply-side or historical ERP should be determined on a case-by-case basis. With regard to beta, the court found fault with both side’s approach.

Beta 40

Beta Risk Premium Capital Structure Discounted Cash Flow 40

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

Equilest

APRIL 11, 2023

With limited features and formulas, it can be difficult to account for all the necessary parameters in a valuation, such as interest rates, equity risk premiums, and beta. It lacks interest rates, equity risk premiums, beta, and other important data.

Business Valuation 40

Business Valuation Beta Risk Premium Discounted Cash Flow 40

Lighter Capital

JUNE 20, 2024

The service has handled more than 11 million calls, and with its beta release of teleCalm Mobile , that number will continue to grow. In under 8 years, Tavis has taken teleCalm from possibility to profitability and secured multiple patents on the service.

Beta 59

Beta Start-ups Finance Equity 59

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 Comps Marketability 104

Andrew Stolz

FEBRUARY 4, 2022

In 3Q21, its net debt-to-equity ratio stood at 0.3x, compared to 0.6x The company is characterized by a strong efficiency, which also boosts future return on equity. The company is highly cyclical reflected in the above-average beta of 1.25x. The company started to reduce its long-term debt. Ratios – Terex Corporation.

Start-ups 52

Start-ups Net Debt Beta Equity 52

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. Users complete a streamlined ESG assessment of the target company to arrive at an ESG score. Who is ValutECO for? Where do I see the impact in Valutico’s valuation platform?

Discounted Cash Flow 52

Discounted Cash Flow Beta Equity Alpha 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. Users complete a streamlined ESG assessment of the target company to arrive at an ESG score. Who is ValutECO for? Where do I see the impact in Valutico’s valuation platform?

Discounted Cash Flow 52

Discounted Cash Flow Beta Equity Alpha 52

Valutico

OCTOBER 20, 2022

Ce = Cost of Equity. B = Beta. (Rm Rm – Rf) = Equity Market Risk Premium. Cp = Cost of Equity Premium. Ce = Cost of Equity. E = Equity . Depending on the exact methodology and discount rate used, this could be the Enterprise Value or Equity Value. Cost of Equity. Equity / Debt + Equity.

Discounted Cash Flow 52

Discounted Cash Flow Terminal Value Weighted Average Cost of Capital Net Present Value 52

Benzinga

FEBRUARY 9, 2023

At launch, the Platform will be in beta format and not all of the experiences and functionality will be available immediately. BitNile.com's metaverse platform (the " Platform ") will launch on March 1, 2023, representing an evolution of how people interact digitally with a bidirectional connection to the physical.

Beta 40

Beta eCommerce Marketability Equity 40

Andrew Stolz

AUGUST 6, 2020

The expected return on an asset is determined by the risk-free rate of return with the addition of the asset’s beta to each macroeconomic factor that impacts the return on the asset multiplied by the risk premium of those factors. Investors assign macroeconomic factors that may affect the return on the asset through a regression process.

Risk-free Rate 52

Risk-free Rate Risk Premium Beta Marketability 52

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 116

Start-ups Marketability Market Capitalization Equity 116

Benzinga

MAY 11, 2022

Several demonstrations of the Guardian XT robot Beta units to partners and customers have taken place in Sarcos' facility since the start of the year and the company continues to expect that Guardian XT robot Beta units will be placed with customers for field tests in mid-2022. million for 2022. Property and equipment, net. .

Technology 40

Technology Beta Start-ups Compliance 40

Global Finance

SEPTEMBER 5, 2024

In exchange, BTG Pactual received 3% equity. Capital investment from Morgan Stanley in each startup is either $250,000 out of the New York–based program or £250,000 (about $322,000) out of the London office, depending on the startup’s location, in exchange for 5% equity in each company.

Banking 52

Banking Finance Technology Start-ups 52

Musings on Markets

JULY 22, 2021

Uber's ownership in Zomato is a result of Zomato's acquisition of Uber Eats India, where Uber received a share of Zomato's equity in exchange. As revenues have grown, the business model for the company has been slower to evolve, as the company has reported extensive losses along the way, as you will see in the next section.

Marketability 88

Marketability Start-ups Equity Price to Book 88

Musings on Markets

JANUARY 12, 2021

Thus, you and I can disagree about whether beta is a good measure of risk, but not on the principle that no matter what definition of risk you ultimately choose, riskier investments need higher hurdles than safer investments.

Corporate Finance 52

Corporate Finance Start-ups Finance Marketability 52

Equilest

JUNE 10, 2023

Factors such as multiples, beta, and equity risk premium are required for accurate calculations. Determining which method to use depends on factors such as the business's size, growth potential, industry conditions, and available data.

Business Valuation 40

Business Valuation Fair Market Value Marketability Technology 40

Equilest

JUNE 13, 2023

Factors such as multiples, beta, and equity risk premium are required for accurate calculations. Determining which method to use depends on factors such as the business's size, growth potential, industry conditions, and available data.

Business Valuation 40

Business Valuation Asset-based Approach Appraisal Intangible Assets 40