Book Value Definition Risk Premium 
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. I do report on a few market-wide data items especially on risk premiums for both equity and debt. Equty Risk Premiums, by Country 4.
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. The Zomato IPO clocks in at 420 pages , much of it designed to bore readers into submission. In its February 2021 VC round, Zomato was priced at close to 400 billion INR ($5.4
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Musings on Markets
FEBRUARY 27, 2023
An Optimizing Tool In my second and third data posts for this year, I chronicled the effects of rising interest rates and risk premiums on costs of equity and capital. 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.
Musings on Markets
JANUARY 10, 2025
Thus, as you peruse my historical data on implied equity risk premiums or PE ratios for the S&P 500 over time, you may be tempted to compute averages and use them in your investment strategies, or use my industry averages for debt ratios and pricing multiples as the target for every company in the peer group, but you should hold back.
Musings on Markets
FEBRUARY 18, 2025
With these characteristics, the accounting balance sheets for these companies will be identical right after they start up, and the book value of equity will be $60 million in each company. In this example, for instance, business A, with a market value of equity of $150 million and a book value of equity of $60 million, will trade at 2.50
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