Musings on Markets

JULY 17, 2023

In my second data update post from the start of this year , I looked at US equities in 2022, with the S&P 500 down almost 20% during the year and the NASDAQ, overweighted in technology, feeling even more pain, down about a third, during the year. trillion below their values from the start of 2022. that was lost last year.

Marketability 98

Marketability Risk Premium Start-ups Treasury 98

Equilest

NOVEMBER 25, 2023

Uncover the intricacies of financial modeling, from understanding fundamental concepts like Free Cash Flow to Firm and Dividend Discount Model, to navigating advanced methodologies such as LBO and DCF. The resulting value represents the cash available to all contributors of capital—both debt and equity.

Discounted Cash Flow 52

Discounted Cash Flow Dividends Enterprise Value Terminal Value 52

Valutico

SEPTEMBER 22, 2023

The income-based approach determines a company’s value by assessing its anticipated future income-generating potential, employing methodologies such as Discounted Cash Flow (DCF) Analysis, Capitalization of Earnings, the Income Multiplier Method, Dividend Discount Model (DDM), and Earnings-Based Valuation.

Discounted Cash Flow 52

Discounted Cash Flow Intangible Assets Book Value Asset-based Approach 52

Class VI Partner

JULY 28, 2021

Adjusted Net Book Value Adjusted Net Book Value is the Book Value of a business that has been adjusted to reflect the current market value of the assets and liabilities of a company. In this case, an adjustment to the value of these assets is required to determine Adjusted Net Book Value.

Book Value 52

Book Value Equity Enterprise Value Fair Market Value 52

Valutico

DECEMBER 15, 2022

“Wind farms are valued at €0.8m – €1.2m SaaS start-ups are valued at 10x Sales”. Equity Vs. Enterprise Multiples – Which To Use? The ratio is either related to the Equity Value or ratios related to the Enterprise Value. . An example of an equity multiple: Price / Earnings. Which Year to Use?

Precedent Transaction Analysis 52

Precedent Transaction Analysis EBITDA Comparable Company Analysis Enterprise Value 52

Valutico

DECEMBER 15, 2022

“Wind farms are valued at €0.8m – €1.2m SaaS start-ups are valued at 10x Sales”. Equity Vs. Enterprise Multiples – Which To Use? The ratio is either related to the Equity Value or ratios related to the Enterprise Value. . An example of an equity multiple: Price / Earnings. Which Year to Use?

Precedent Transaction Analysis 52

Precedent Transaction Analysis EBITDA Comparable Company Analysis Enterprise Value 52

Benzinga

MARCH 28, 2024

("IFH") (OTCQX: IFHI ) today announced that they have entered into a definitive merger agreement under which CBNK will acquire IFH in a cash and stock transaction valued at $66 million, exclusive of the value of a dividend to be received by IFH shareholders at or immediately prior to closing. and Capital Bank.

Banking 40

Banking Dividends Book Value Equity 40

Andrew Stolz

MAY 8, 2020

In reference to Aswath Damodaran’s book “The Dark Side of Valuation Valuing Young Distressed and Complex Businesses,” it mentions that a declining company usually possesses the following five characteristics: (1) Stagnant or declining revenue. (2) 4) Big payouts – dividends and stock buyback. (5) 3) Asset divestitures. (4)

Discounted Cash Flow 52

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

Benzinga

DECEMBER 2, 2024

Adds scale and extends Ready Capital's core platform with UDF IV's proven land development lending platform Diversifies Ready Capital's portfolio and offers land development solution to borrowers and investors Expected to be accretive to Ready Capital's earnings and book value in 2025 UDF IV shareholders may receive up to $5.89

Book Value 40

Book Value Finance Dividends Equity 40

The Mentor Group

FEBRUARY 1, 2022

Long-term equity anticipation securities (LEAPs). Instead, they own non-operating assets such as corporate securities, LLC Interests in partnerships, private equity investments, government obligations and real estate. Some of these metrics, but not all inclusive, are the following: Return on assets and equity.

Dividends 40

Dividends Fair Market Value Equity Book Value 40

Farrel Fritz

AUGUST 1, 2022

For one of the “outside” shareholders who drew no salary and sought to monetize her 25% share of the trapped-in value of the real estate, those factors most likely contributed to her decision to sue for judicial dissolution of the three companies, claiming she was the victim of a freeze-out. The Dissolution Petitions.

Book Value 52

Book Value Dividends Equity Appraisal 52

Musings on Markets

MARCH 8, 2023

This is the last of my data update posts for 2023, and in this one, I will focus on dividends and buybacks, perhaps the most most misunderstood and misplayed element of corporate finance. Viewed in that context, dividends as just as integral to a business, as the investing and financing decisions.

Dividends 102

Dividends Start-ups Corporate Finance Finance 102

Benzinga

APRIL 18, 2022

Return on average tangible common equity (1). . . The return on average tangible assets was 1.07%, compared to 1.30%, and the return on average tangible common equity was 10.31%, compared to 12.37%. million lower unrealized gains from equity method investments included in the prior quarter and $0.7 0.60. . $. 0.74. . $.

Banking 40

Banking Book Value Equity Intangible Assets 40

Benzinga

SEPTEMBER 6, 2023

Net operating income attributable to common shareholders is a non-IFRS measure which represents the net income attributable to shareholders, excluding the after-tax impact of non-operating results, net of net income (loss) attributable to non-controlling interests (non-operating component), preferred share dividends and other equity distributions.

Discounted Cash Flow 40

Discounted Cash Flow Net Present Value Book Value Dividends 40

Chris Mercer

MARCH 8, 2023

The book value of the stock and the financial condition of the business. The dividend-paying capacity. Whether or not the enterprise has good will or other intangible value. Sales of the stock and the size of the block of stock to be valued. The earning capacity of the company.

Fair Market Value 52

Fair Market Value Marketability Appraisal Business Valuation 52

Brian DeChesare

JUNE 1, 2022

Traditionally, the sector was viewed as a defensive play for investors who wanted stable dividends and no drama. Companies tend to offer high, stable dividend yields, and they finance their massive capital expenditures primarily with debt , with the highest leverage ratios of any industry outside of financial institutions.

Banking 98

Banking Equity Book Value Capital Structure 98

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

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. Cost of Equity 1. Price to Book 3.

Risk Premium 52

Risk Premium Dividends Start-ups EBITDA 52

Musings on Markets

JANUARY 9, 2021

The second was that, starting mid-year in 2020, equity markets and the real economy moved in different directions, with the former rising on the expectations a post-virus future, and the latter languishing, as most of the world continued to operate with significant constraints.

Risk Premium 52

Risk Premium Market Capitalization Equity Start-ups 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. Return on Equity 1. Dividends and Potential Dividends (FCFE) 1. Return on Equity 2.

Dividends 105

Dividends Risk Premium Equity Book Value 105

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.

Risk Premium 115

Risk Premium Dividends Start-ups Corporate Finance 115

Musings on Markets

FEBRUARY 4, 2023

Adani's Debt Load The investment side of the Adani story is not complete without bringing in the financing part, since the money for these investments has to come from somewhere, either internally, residual cash flows from existing operations, or externally, from new debt or equity.

Start-ups 100

Start-ups Market Capitalization Equity Marketability 100

Musings on Markets

FEBRUARY 23, 2025

The Debt Trade off As a prelude to examining the debt and equity tradeoff, it is best to first nail down what distinguishes the two sources of capital. To me, the key distinction between debt and equity lies in the nature of the claims that its holders have on cash flows from the business.

Equity 75

Equity EBITDA Risk Premium Gross Debt 75