Valutico

APRIL 12, 2023

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. These costs are then combined into a “weighted average” which represents the overall cost of financing a business.

Weighted Average Cost of Capital 52

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

JANUARY 5, 2024

I have also developed a practice in the last decade of spending much of January exploring what the data tells us, and does not tell us, about the investing, financing and dividend choices that companies made during the most recent year. Beta & Risk 1. Return on Equity 1. Equity Risk Premiums 2. Financing Flows 5.

Dividends 105

Dividends Risk Premium Equity Book Value 105

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

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

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.

Equity 80

Equity Book Value Start-ups Corporate Finance 80

Equidam

FEBRUARY 1, 2024

While some may charge fees for services provided, a venture studio’s operations are financed primarily by management fees from the fund, which in venture capital are typically around 2%. Some venture studios may allocate a part of that fund to the venture studio itself.

Beta 72

Beta Finance Equity Marketability 72

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 89

Banking Risk-free Rate Equity Start-ups 89

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. Lisa, who became a teleCalm customer in 2020, says the service has been a lifesaver.

Beta 59

Beta Start-ups Finance Equity 59

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

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

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

DECEMBER 6, 2023

There are only a few dozen large funds in this category worldwide, but they’ve greatly impacted the markets and finance careers. Beta-Neutral Portfolios: For example, if the S&P 500 goes up or down by 5%, your team’s portfolio should move by ~0%.

Start-ups 104

Start-ups Beta Marketability Comps 104

Brian DeChesare

MAY 24, 2023

“Event-driven hedge funds” is one of the more confusing labels in finance. A long/short equity fund could find an undervalued company, like it for reasons A, B, and C, and argue that its price will increase by 50%. But lock-up periods are longer than most long/short equity funds.

Equity 64

Equity Start-ups EBITDA Banking 64

Global Finance

SEPTEMBER 5, 2024

Global Finance ’s sixth annual list of the world’s best innovation labs highlights the power of collaboration. In exchange, BTG Pactual received 3% equity. EFG EV Fintech is the brainchild of EFG Finance (a wholly owned subsidiary of EFG Hermes Holding) and Egypt’s government-backed VC fund, Egypt Ventures.

Banking 52

Banking Finance Technology Start-ups 52

Musings on Markets

JANUARY 6, 2023

Check rules of thumb : Investing and corporate finance are full of rules of thumb, many of long standing. I do report on a few market-wide data items especially on risk premiums for both equity and debt. Cost of Equity 1. Standard deviations in equity and firm value 4. Return on Equity 1. PE & PEG 2.

Risk Premium 52

Risk Premium Dividends Start-ups EBITDA 52

Musings on Markets

JANUARY 12, 2021

Corporate Finance : Corporate finance is the development of the first financial principles that govern how to run a business. It is that mission that makes corporate finance the ultimate big picture class, one that everyone (entrepreneurs, investors, analysts, business observers) should take. Of course, but with two caveats.

Corporate Finance 52

Corporate Finance Start-ups Finance Marketability 52

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

Appraiser Newsroom

JUNE 4, 2024

Kevin holds an MBA in finance from Georgia State University and a Bachelors in Chemical Engineering from the Georgia Institute of Technology. Finance Professor | Pepperdine Graziadio Business School Craig R. Everett is a finance professor at the Pepperdine Graziadio Business School. a Software as a Service company.

Business Valuation 59

Business Valuation Intangible Assets Appraisal Finance 59

Reynolds Holding

JULY 13, 2023

In a new book , I discuss “investment crowdfunding” (also known as “equity crowdfunding” or “securities crowdfunding”), an inclusive new type of online venture capital market – it’s like Kickstarter , except you get a share of stock. They wear t-shirts with the company logo.

Beta 40

Beta Marketability Compliance Equity 40

Musings on Markets

JANUARY 28, 2024

In my last data updates for this year, I looked first at how equity markets rebounded in 2023 , driven by a stronger-than-expected economy and inflation coming down, and then at how interest rates mirrored this rebound. What is risk?

Risk Premium 121

Risk Premium Beta Start-ups Equity 121

Value Scope

SEPTEMBER 24, 2020

The second inflection point was triggered by the “Fundamental Reshaping of Finance” open letter to CEOs on January 14, 2020, by BlackRock Chairman and Chief Executive Officer Larry Fink. “In Adjustments to Beta can accomplish this. The re-levered Beta for the private company we were valuing was 0.56.

Intangible Assets 130

Intangible Assets Alpha Beta Marketability 130

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 Banking Start-ups 52

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. Expect to show investors a detailed business plan with crucial finance terms, marketing strategies, financial projections, and market research. Return on investment.

Beta 100

Beta Equity Marketability Banking 100

Brian DeChesare

AUGUST 10, 2022

Oil & Gas Investment Banking Definition: In oil & gas investment banking, professionals advise companies that search for, produce, store, transport, refine, and market energy on raising debt and equity and completing mergers and acquisitions. Midstream: 85 (mix of asset deals, M&A, debt, and even some private equity activity).

Banking 98

Banking EBITDA Dividends Equity 98

Musings on Markets

OCTOBER 25, 2021

A rising stock market has augmented the wealth inequality, since the wealthiest hold the preponderance of equities in the market. If you are in finance, and you were measuring the risk of different tax revenue sources, capital gains tax revenue would have a "higher beta" than "income tax revenues or sales tax revenues.

Start-ups 98

Start-ups Marketability Beta Appraisal 98

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

Andrew Stolz

AUGUST 6, 2020

Beta is the risk statistic used to compare the portfolio’s exposure to systematic risk to that of the market. The beta of the portfolio is calculated by multiplying the beta of each asset to its weight in the portfolio. Beta of Asset A * Weight of Asset A) + (Beta of Asset B * Weight of Asset B).

Beta 52

Beta Covariance Systematic Risk Marketability 52

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

Valutico

AUGUST 17, 2022

Valutico has once again made finance professional’s lives easier by announcing the launch of the Venture Capital (VC) method for valuing start-ups, available for the first time within its online platform. . The calculation of these discount rates are based on the observed betas of similar listed peer companies. What is the VC method?

Start-ups 52

Start-ups EBIT Weighted Average Cost of Capital Discounted Cash Flow 52

Musings on Markets

JANUARY 10, 2025

In corporate finance and investing, which are areas that I work in, I find myself doing double takes as I listen to politicians, market experts and economists making statements about company and market behavior that are fairy tales, and data is often my weapon for discerning the truth. Beta & Risk 1. Return on Equity 1.

Risk Premium 119

Risk Premium Dividends Start-ups Corporate Finance 119

Musings on Markets

FEBRUARY 8, 2025

I spend most of my time in the far less rarefied air of corporate finance and valuation, where businesses try to decide what projects to invest in, and investors attempt to estimate business value. A key tool in both endeavors is a hurdle rate a rate of return that you determine as your required return for business and investment decisions.

Risk Premium 72

Risk Premium Beta Start-ups Equity 72

Equidam

APRIL 22, 2025

Venture Capital (VC) Financing: This is perhaps the most common context. It determines the price per share, dictating how much equity founders concede in exchange for the capital raised. [3] Beta: While specific to the company and its industry, overall market volatility can influence industry betas relative to the market. [23]

Discounted Cash Flow 64

Discounted Cash Flow Terminal Value Marketability EBITDA 64