Musings on Markets

OCTOBER 6, 2023

One way to measure progress on this issue is to look at the portion of the book value of equity at US companies that comes from tangible assets, in the chart below: Looking across all US firms from 1980 to 2022, the portion of book value of equity that comes tangible assets has dropped from more than 70% in 1998 to about 30% in 2022.

Intangible Assets 126

Intangible Assets Book Value Equity Start-ups 126

Musings on Markets

JANUARY 5, 2024

Standard Deviation in Equity/Firm Value 2. Book Value Multiples 3. Working capital needs Thus, I compute pricing multiples based on revenues (EV to Sales, Price to Sales), earnings (PE, PEG), book value (PBV, EV to Invested Capital) or cash flow proxies (EV to EBITDA). Fundamenal Growth in Operating Earnings 3.

Dividends 105

Dividends Risk Premium Equity Book Value 105

Andrew Stolz

JANUARY 12, 2022

Download the full report as a PDF. Book value is the value attributable to shareholders in case the company sells all its assets and repays its liabilities (also called liquidation value). A price-to-book ratio of less than 1x indicates that the market values the net assets less than the balance sheet suggests.

EBIT 52

EBIT Price to Book Book Value Liquidation Value 52

Musings on Markets

JULY 17, 2023

In the table below, I list the ten worst performing and best performing industry groups, based purely on market capitalization change in the first half of 2023: Download market performance in 2023, by industry The worst performing industry groups are in financial services and energy, with oilfield services companies being the worst impacted.

Marketability 98

Marketability Risk Premium Start-ups Treasury 98

Musings on Markets

FEBRUARY 15, 2023

Both accounting returns are computed based upon book value, not because we have suddenly developed trust in accounting, but because the objective is to estimate what investors have earned on what they originally invested in a company, rather than an updated or a marked-to market value.

Start-ups 52

Start-ups Equity Risk Premium Risk-free Rate 52

Musings on Markets

JULY 22, 2021

History and Business Model Zomato was founded in 2008 by Deepinder Goyal and Pankaj Chaddah, as Foodiebay, in response to the difficulties that they noticed that their office mates were having in downloading menus for restaurants. billion), translating into a value per share of 41 INR.

Marketability 99

Marketability Start-ups Equity Price to Book 99

Musings on Markets

JANUARY 9, 2021

Challenge rules of thumb and conventional wisdom : Investing has always had rules of thumb on how and when to invest, ranging from using historical PE or CAPE ratios to decide if markets are over valued, to simplistic rules (eg. buy stocks that trade at less than book value or trade at PEG ratios less than one) for individual stocks.

Risk Premium 52

Risk Premium Market Capitalization Equity Start-ups 52