Brian DeChesare

NOVEMBER 9, 2022

People usually start this discussion by comparing S&T exits to investment banking exit opportunities and saying that S&T exit options are “worse.”. The problem is that you won’t develop the deal analysis, valuation, financial modeling , and market analysis skills these firms usually seek. But that’s not quite accurate.

Banking 93

Banking Equity Start-ups Marketability 93

Brian DeChesare

AUGUST 31, 2022

But before delving into the best candidates for these roles, typical trades, careers, and more, let’s start with the basic definitions: What is a Convertible Arbitrage Hedge Fund? But with convertible arbitrage and other relative value strategies, the overall market’s results do not matter (to the same degree).

Banking 89

Banking Risk-free Rate Equity Start-ups 89

Andrew Stolz

FEBRUARY 4, 2022

Strong ROE and ROIC might be overlooked by the market. The efforts start to pay off as the operating profit achieves a higher level. Strong ROE and ROIC might be overlooked by the market. Both ROIC and ROE could climb up to 20% in 21E. The company started to reduce its long-term debt. Ratios – Terex Corporation.

Start-ups 52

Start-ups Net Debt Beta Equity 52

Brian DeChesare

MAY 3, 2023

When I started offering financial modeling training , I never expected to get questions about a methodology like the Dividend Discount Model (DDM). It can be useful for certain companies, such as power and utility firms and midstream (pipeline) operators in oil & gas … …but it’s also much harder to set up and use than a standard DCF.

Dividends 64

Dividends Terminal Value Enterprise Value Equity 64

Brian DeChesare

SEPTEMBER 13, 2023

Distressed debt investing offers advantages over other hedge fund strategies , but the marketing often oversells the benefits. These percentages mean the market is pricing in a high likelihood of creditor losses in a restructuring or bankruptcy. “Distressed assets offer non-correlated returns, similar to global macro.”

Equity 103

Equity Banking EBITDA Start-ups 103

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. Additionally, Excel does not have market analysis reports or all the necessary parameters to create an accurate valuation. You can Sign up for free here.

Business Valuation 40

Business Valuation Beta Risk Premium Discounted Cash Flow 40

Musings on Markets

JANUARY 12, 2021

I also start thinking about my passion, which is teaching, the spring semester to come, and the classes that I will be teaching, repeating a process that I have gone through every year since 1984, my first year as a teacher. Face up to uncertainty, rather than avoid or deny it : Uncertainty is a feature of investing/ business, not a bug.

Corporate Finance 52

Corporate Finance Start-ups Finance Marketability 52

Brian DeChesare

MAY 24, 2023

But, as usual, I want to start with the definitions and fund types: What is an “Event-Driven Hedge Fund”? Translating that to English: “We can grow more quickly and get higher margins without CMS, so our multiples will increase, and our share price will go up.” For example, if Jacobs trades up from an 11.5x

Equity 64

Equity Start-ups EBITDA Banking 64

Brian DeChesare

JULY 27, 2022

Credit Hedge Fund Definition: Credit hedge funds buy and sell fixed-income securities, such as high-yield bonds, distressed bonds, structured credit, and their derivatives; they profit by setting up trades that reduce one type of credit risk while betting on mispriced securities whose prices are likely to change in the future.

Equity 52

Equity Start-ups Private Equity Firm Beta 52

Brian DeChesare

JULY 19, 2023

I’ll answer both questions here, but I want to start with a few definitions: What is a Long-Only Hedge Fund? So, many distressed funds that pursue control strategies are “long-only” even if they market themselves as “distressed” or “deep value.” This last category is the most common way hedge funds qualify as long-only.

Equity 52

Equity Beta Banking Start-ups 52

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.

Technology 40

Technology Beta Start-ups Compliance 40

Brian DeChesare

JUNE 29, 2022

And similar to long/short equity hedge funds , they target undervalued and misunderstood companies and profit when the rest of the market catches up. Long/short equity and credit hedge funds look for mispriced securities with potential catalysts that might change their market prices.

Private Equity Firm 52

Private Equity Firm Equity Banking Start-ups 52

Musings on Markets

JULY 13, 2022

It has been my practice for the last two decades to take a detailed look at how risk varies across countries, once at the start of the year and once mid-year. In most years, the differences between the two updates are small, and often ignorable, but this year's update brings significant changes for many reasons.

Risk Premium 103

Risk Premium Risk-free Rate Start-ups Equity 103

Musings on Markets

JULY 22, 2021

Zomato, an Indian online food-delivery company, was opened up to public market investors on July 14, 2021, and its market debut is being watched for clues by a number of other online ventures in India, waiting in the wings to go public.

Marketability 99

Marketability Start-ups Equity Price to Book 99

Musings on Markets

OCTOBER 25, 2021

The graph below, from the Pew Research Center, is a good starting point, since it highlight the shift in the share of aggregate US income flowing to upper, middle and lower income households. A rising stock market has augmented the wealth inequality, since the wealthiest hold the preponderance of equities in the market.

Start-ups 98

Start-ups Marketability Beta Appraisal 98

Musings on Markets

FEBRUARY 27, 2023

That may reflect the concern that once a person or entity starts borrowing to fund its needs, it is easy to overuse debt, and risk its wellbeing in the process. 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 this post, I start by looking at the end game for businesses, and how that choice plays out in investment rules for these businesses, and then examine how much businesses generated in profits in 2023, scaled to both revenues and invested capital. The End Game in Business If you start a business, what is your end game?

Equity 80

Equity Book Value Start-ups Corporate Finance 80

Musings on Markets

JANUARY 6, 2023

In my last post, I talked about the ritual that I go through every year ahead of my teaching each spring, and in this one, I will start on the first of a series of posts that I make at the start of each year, where I look at data, both macro and company-level. That is not true!

Risk Premium 52

Risk Premium Dividends Start-ups EBITDA 52

Musings on Markets

FEBRUARY 10, 2021

In this post, I will start by looking at the role that hurdle rates play in running a business, with the consequences of setting them too high or too low, and then look at the fundamentals that should cause hurdle rates to vary across companies.

Risk-free Rate 52

Risk-free Rate Risk Premium Start-ups Equity 52

FE International

MARCH 14, 2018

As the technical evolution of the industry continues to take it in a more accessible direction , and consumer demand for useful and disruptive software increases, the market is getting more lucrative for innovative, independent developers. A breakdown of the market shares enjoyed by leading e-commerce platforms. Universal Apps.

Marketability 52

Marketability Start-ups EBITDA Business Valuation 52

Brian DeChesare

AUGUST 10, 2022

But before delving into the exit opportunities and the long-term outlook, let’s start with the fundamentals: Oil & Gas Investment Banking Defined. Refining & Marketing (R&M or “Downstream”) – These firms turn crude oil and gas into usable products, such as gasoline for cars and jet fuel for planes.

Banking 98

Banking EBITDA Dividends Equity 98

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. . One difficulty with valuing start-ups is that they have less financial history behind them. What is the VC method?

Start-ups 52

Start-ups EBIT Weighted Average Cost of Capital Discounted Cash Flow 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. The sped-up settlement cycle is a step up from India’s previous one-day settlement system.

Start-ups 52

Start-ups Beta Banking Finance 52

Global Finance

SEPTEMBER 5, 2024

Other technological innovations from these labs address everything from improving anti-money laundering (AML) compliance and easing underwriting processes to speeding up customer onboarding and improving cash management for small and midsize enterprise (SME) clients. DeLorean] didn’t start as an anti-fraud solution.

Banking 52

Banking Finance Technology Start-ups 52

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. Analysts often try to bring company-specific components, i.e,

Risk Premium 121

Risk Premium Beta Start-ups Equity 121

Musings on Markets

JANUARY 5, 2024

Thus, looking at only the companies in the S&P 500 may give you more reliable data, with fewer missing observations, but your results will reflect what large market cap companies in any sector or industry do, rather than what is typical for that industry.

Dividends 105

Dividends Risk Premium Equity Book Value 105

Musings on Markets

JANUARY 10, 2025

It is the end of the first full week in 2025, and my data update for the year is now up and running, and I plan to use this post to describe my data sample, my processes for computing industry statistics and the links to finding them. In the table below, we compare the changes in regional market capitalizations (in $ millions) over time.

Risk Premium 119

Risk Premium Dividends Start-ups Corporate Finance 119

Musings on Markets

FEBRUARY 8, 2025

In the first five posts, I have looked at the macro numbers that drive global markets, from interest rates to risk premiums, but it is not my preferred habitat. The second set of inputs are prices of risk, in both the equity and debt markets, with the former measured by equity risk premiums , and the latter by default spreads.

Risk Premium 72

Risk Premium Beta Start-ups Equity 72

Value Scope

SEPTEMBER 24, 2020

It started sometime last year, during the fourth quarter. That said, this lens of due diligence has changed how the market invests. A factor of investment in the market is based on sentiment and belief in performance. Uncertainty in market signals. Click to Download: ESG A Valuation Framework. Exposure to litigation.

Intangible Assets 130

Intangible Assets Alpha Beta Marketability 130