Musings on Markets

JULY 17, 2023

In 2022, old-time value investors felt vindicated, as the damage that year was inflicted on the highest growth companies, especially in technology.

Marketability 96

Marketability Risk Premium Start-ups Treasury 96

Equilest

NOVEMBER 25, 2023

Emphasizing Unique Considerations: Valuing a bank requires a distinct approach due to the nature of its operations. One key emphasis is on the Price to Book Value multiple. Unlike many industries, banks regularly mark their assets and liabilities to market, reflecting the market value in their balance sheets.

Discounted Cash Flow 52

Discounted Cash Flow Dividends Enterprise Value Terminal Value 52

Andrew Stolz

JANUARY 12, 2022

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

Reynolds Holding

NOVEMBER 8, 2023

The Market Value Added (MVA) Spread from the ISS EVA framework serves to assess company valuation. This metric corresponds to the difference between a company’s Enterprise Value and its Capital, scaled by its Capital.

Enterprise Value 52

Enterprise Value Price to Book Marketability Book Value 52

Musings on Markets

JULY 22, 2021

Third, I will confront the oft used contention that value is in the eye of the beholder, i.e., that Zomato is worth a lot because other investors believe it to be worth a lot, and examine a pricing rationale for Zomato.

Marketability 89

Marketability Start-ups Equity Price to Book 89

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. Standard deviation in stock price 2. Price to Book 3. High-Low Price Risk Measure 5. Standard deviations in equity and firm value 4.

Risk Premium 52

Risk Premium Dividends Start-ups EBITDA 52

Musings on Markets

JANUARY 9, 2021

Consider, for instance, an investor who picks stocks based upon price to book ratios, who finds a stock trading at a price to book ratio of 1.5. 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

Musings on Markets

FEBRUARY 4, 2023

The PE ratio for the stock has gone from a modest 15 times earnings in the 2016-21 time period to 214 times earnings in the most recent two years, and the enterprise value has jumped from about 12 times EBITDA during 2016-21 to 53 times EBITDA in the most recent two years. times revenues in the most recent two years.

Start-ups 100

Start-ups Market Capitalization Equity Marketability 100