Musings on Markets

MAY 20, 2022

Historical Data: 1930-2019 To see how this framework works in practice, let's start by looking at the performance of US stocks, across the decades, and look at the returns on stocks, broadly categorized based on market capitalization and price to book ratios.

Price to Book 102

Price to Book Dividends Beta Equity 102

Appraisal Rights

JUNE 5, 2017

With regard to beta, the court found fault with both side’s approach. Nevertheless, it found supply-side ERP appropriate as the “default” method in recent Delaware chancery cases, unless a party provided a compelling reason to use historical ERP.

Beta 40

Beta Risk Premium Capital Structure Discounted Cash Flow 40

Musings on Markets

FEBRUARY 16, 2024

Intrinsic Value Effect : The calculations for cashflows are identical to those done when the risks are company-specific, with cash flows estimated with and without the catastrophic risk, but since these risks are sector-wide or market-wide, there will also be an effect on discount rates. at the end of 2007 to 0.85 two years later.

Risk Premium 76

Risk Premium Start-ups Beta Marketability 76

Musings on Markets

NOVEMBER 1, 2023

It was after one of these downturns in 2019, when the stock hit $180 (with a market cap of $32 billion), that I bought Tesla for the first time , albeit labeling it as my corporate teenager, an investment that would frustrate me because it would get in the way of its own potential.

Start-ups 124

Start-ups Marketability Market Capitalization Equity 124

Musings on Markets

JANUARY 6, 2023

Data universe : In my sample, I include all publicly traded firms with market capitalizations that exceed zero, traded anywhere in the world. Cost of Capital 3. For market data , where the updating is continuous, that is data as of the January 1, 2023. Cost of Equity 1. PE & PEG 2. Standard deviation in stock price 2.

Risk Premium 52

Risk Premium Dividends Start-ups EBITDA 52

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.

Equity 52

Equity EBITDA Start-ups Net Debt 52

Musings on Markets

JANUARY 5, 2024

Since I am lucky enough to have access to databases that carry data on all publicly traded stocks, I choose all publicly traded companies, with a market price that exceeds zero, as my universe, for computing all statistics. Beta & Risk 1. Return on (invested) capital 2. Return on Equity 1. Debt Ratios & Fundamentals 1.

Dividends 105

Dividends Risk Premium Equity Book Value 105