Musings on Markets

JANUARY 31, 2024

Among the sectors, energy stands out, generating the highest margins globally, and the second highest, after technology firms in the United States. That said, global (US) companies collectively generated $5.3 trillion ($1.8

Equity 80

Equity Book Value Start-ups Corporate Finance 80

Brian DeChesare

JUNE 1, 2022

That is still true for the average company in the industry: it is more defensive than something like technology or financial institutions. Overall, though, there are fewer industry-focused independent/boutique firms than in sectors like technology or healthcare.

Banking 98

Banking Equity Book Value Capital Structure 98

Valutico

SEPTEMBER 22, 2023

This is accomplished through methods like Comparable Company Analysis, Precedent Transaction Analysis, and Market Capitalization, which collectively offer insights into the company’s value within the context of the broader market landscape. It is used to assess a company’s valuation relative to its net asset value.

Discounted Cash Flow 52

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

Benzinga

MAY 4, 2022

The transaction is expected to be significantly accretive to earnings in 2023 with modest dilution of tangible book value. accretive to earnings per share in 2023, with modest dilution of tangible book value per share that will be earned back in 1.6 as of May 3, 2022, the transaction is valued at approximately $173.2

Banking 40

Banking Book Value Marketability Technology 40

Benzinga

OCTOBER 7, 2024

There would likely need to be significant job cuts and reduced investments in areas such as technology in order for Blue Hill to reach its stated financial targets after it took control of Territorial. Blue Hill's registered business address appears to be a residential home in Hudson, New York. per share to $0.11 per share 3 $10.5

Dividends 52

Dividends Banking Book Value Technology 52

Musings on Markets

NOVEMBER 10, 2022

In general, correcting the accounting mistake will increase operating and net profits, at most firms, as well as book equity and invested capital, and for most firms that spend money on R&D, capitalizing R&D will lower accounting returns (return on equity and return on invested capital). billion to $49.3 billion , as reported.

Finance 96

Finance Start-ups Equity Equity Financing 96

Valutico

MAY 6, 2024

Asset-based methods like Adjusted Book Value, Liquidation Value, and Replacement Cost consider the worth of tangible assets. These multiples are applied to target company’s latest financials such as revenue, earnings and book value of equity to arrive at an estimate of enterprise value or equity value.

Discounted Cash Flow 52

Discounted Cash Flow Precedent Transaction Analysis Weighted Average Cost of Capital Comparable Company Analysis 52

Reynolds Holding

FEBRUARY 12, 2024

So, what the heck is going on with personal installment loan accounting at SoFi Technologies ? According to Bologna, if SoFi had elected to account for loans at amortized cost and had to take CECL reserves similar to peers, its tangible book value per share reported for the third quarter of 2023 would fall from $3.42

Banking 45

Banking Book Value Start-ups Technology 45

Musings on Markets

OCTOBER 19, 2021

The first is that technology has made it possible to collect more granular data, and on more dimensions of business, than ever before in history, and to report that data. As we look at the explosion of disclosures around the world, there are many obvious culprits.

Start-ups 93

Start-ups Banking Marketability Technology 93

Benzinga

DECEMBER 6, 2023

We couldn't be more pleased to add another strong community bank to our network and continue to serve our Missouri customer base with additional locations, technology, and customized solutions for businesses and families," said Brad Elliott, Equity Chairman & Chief Executive Officer.

Banking 40

Banking Equity Book Value Marketability 40

Equilest

AUGUST 6, 2023

Asset-Based Valuation Methods Book Value vs. Market Value: Assets can be valued based on their accounting book value or market value, depending on their condition and the purpose of the valuation.

Discounted Cash Flow 40

Discounted Cash Flow Business Valuation Precedent Transaction Analysis Comparable Company Analysis 40

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.

Marketability 98

Marketability Risk Premium Start-ups Treasury 98

Benzinga

APRIL 18, 2022

Common book value per share decreased $0.71 Tangible common book value per share decreased $0.69 Tangible common book value per share decreased $0.69 Excluding accumulated other comprehensive loss, the tangible book value per share increased $0.37 Shareholders' equity totaled $820.2

Banking 40

Banking Book Value Equity Intangible Assets 40

Peak Business Valuation

MAY 28, 2024

Check out How to Value a Cleaning Service Company to learn more. Asset Approach The asset approach values a cleaning service based on its assets and liabilities. It is similar to determining a company’s book value from its balance sheet. Then, they calculate the net value of assets after deducting liabilities.

Business Valuation 52

Business Valuation Appraisal Discounted Cash Flow Finance 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. Value estimate – Hyundai.

EBIT 52

EBIT Price to Book Book Value Liquidation Value 52

ThomsonReuters

JUNE 15, 2021

Goodwill is an accounting term for the figure that is recorded on the balance sheet after subtracting the book value of a business from the higher price that was paid for it. There’s a lot that’s going to be required of people, process, and technology. Processes are going to change. You’re probably going to have to staff up.

Risk-free Rate 64

Risk-free Rate Equity Start-ups Book Value 64

Valutico

AUGUST 23, 2023

Asset-Based Approaches: Asset-based approaches determine a company’s value based on its net asset value (NAV). Two commonly used asset-based approaches are: a) Book Value Method: The book value method calculates a company’s net asset value by subtracting total liabilities from the fair market value of total assets.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis EBITDA Enterprise Value 52

Valutico

AUGUST 10, 2023

Asset-Based Approaches: Asset-based approaches determine a company’s value based on its net asset value (NAV). Two commonly used asset-based approaches are: a) Book Value Method: The book value method calculates a company’s net asset value by subtracting total liabilities from the fair market value of total assets.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis EBITDA Enterprise Value 52

ThomsonReuters

OCTOBER 5, 2023

Declining balance method This method , also known as the reducing balance method , applies an amortization rate on the remaining book value to calculate the declining value of expenses. Goodwill becomes impaired when its fair value declines below its carrying value.” Is goodwill depreciated or amortized?

Intangible Assets 52

Intangible Assets Book Value EBIT Technology 52

Equilest

AUGUST 18, 2024

Key Provisions The ruling outlines the principles and factors that should be considered when valuing a business, including the nature of the business, the economic outlook, the book value of the stock, the company’s earning capacity, and the dividend-paying capacity.

Appraisal 40

Appraisal Fair Market Value Business Valuation Intangible Assets 40

Benzinga

APRIL 28, 2023

Book value per common share was $32.15 for the fourth quarter of 2022, while tangible book value per share (1) was $24.52 Resilient profitability: Earnings of $11.2 for the first quarter, compared to $32.24 at March 31, 2023, compared to $24.59, at December 31, 2022. million compared to net interest income of $38.6

Dividends 40

Dividends Banking Book Value Equity 40

Equilest

NOVEMBER 25, 2023

Candidates should highlight their commitment to staying updated on industry trends, regulations, and emerging technologies. 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.

Discounted Cash Flow 52

Discounted Cash Flow Dividends Enterprise Value Terminal Value 52

Musings on Markets

FEBRUARY 27, 2023

That, for instance, is the only way to explain why older telecom companies, which developed a practice of borrowing large amounts during their time as monopoly phone businesses, continue that practice, even as their business have evolved into intensely competitive, technology businesses. at least with technology companies).

Equity 52

Equity EBITDA Start-ups Net Debt 52

Musings on Markets

FEBRUARY 15, 2023

Some of that variation can be attributed to different mixes of businesses in different regions, since unit economics will result in higher gross margins for technology companies and commodity companies, in years when commodity prices are high, and lower gross margins for heavy manufacturing and retail businesses.

Start-ups 52

Start-ups Equity Risk Premium Risk-free Rate 52

Benzinga

JULY 10, 2023

With the completion of this transaction, SMGI's balance sheet is significantly improved, including a large increase in the book value of the combined company. Based on audited pro forma 2022 combined revenues of $153 million and pro forma 2022 estimated adjusted EBITDA of $18.2 million (including $2.5

EBITDA 40

EBITDA Book Value Capital Structure Marketability 40

Benzinga

JULY 25, 2023

It will have operational and financial scale to increase investment in the franchise, including its technology platform, in order to elevate the client experience, improve efficiencies, attract the highest quality talent, and enhance new business development efforts.

Equity 40

Equity Banking Book Value Treasury 40

Reynolds Holding

NOVEMBER 8, 2023

This metric corresponds to the difference between a company’s Enterprise Value and its Capital, scaled by its Capital. MVA can be understood as the Price-to-Book ratio; however, the book value has been refined to account for economic adjustments. and 11.2%, respectively.

Enterprise Value 52

Enterprise Value Price to Book Marketability Book Value 52

Musings on Markets

JULY 22, 2021

It would be churlish on my part to take issue with the bloat and selective disclosure in Zomato's prospectus, since they are following the script that other technology companies around the world have written for going public, but it is frustrating to read through 420 pages, and still be left in the dark on key numbers.

Marketability 99

Marketability Start-ups Equity Price to Book 99

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. There is always the chance that I will get distracted along the way, since I want to value Tesla later this month and return to my FANGAM valuations in February!

Risk Premium 52

Risk Premium Dividends Start-ups EBITDA 52

Benzinga

APRIL 26, 2023

Book value per common share of $22.79 Tangible book value per common share of $20.38 The unrealized losses, net of taxes, in the AFS portfolio were $18.0 million at March 31, 2023. at March 31, 2023 increased $0.66 from fourth quarter 2022 and increased $0.23 from first quarter 2022. at March 31, 2023 increased $0.67

Dividends 40

Dividends Banking Equity Book Value 40

FE International

DECEMBER 31, 2021

How to Value an Advertising Business. How to Value an Affiliate Business. How to Value an App. As the father of value investing taught in his seminal investment book , value means different things to different people and, as a result, the price offered by different buyers for the same asset can be quite substantial.

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Business Valuation Precedent Transaction Analysis Start-ups 52

Musings on Markets

JANUARY 9, 2021

Thus, an analyst who follows young technology companies may decide that paying ten times revenues for a company is a bargain, if all of the companies that he tracks trade at multiples greater than ten times revenues. 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 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

Equity 52

Equity Book Value Marketability 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 Marketability Equity 100

Musings on Markets

JANUARY 26, 2025

Just as the small cap premium acquired standing as conventional wisdom in the twentieth century, the data and research also indicated that stocks that trade at low price to book ratios earned higher returns that stocks that trade at high price to book ratios, in what was labeled as the value premium. trillion ($13.6

Price to Book 76

Price to Book Start-ups Book Value Marketability 76

Musings on Markets

JANUARY 10, 2025

Breaking down companies by (S&P) sector, again both in numbers and market cap, here is what I get: While industrials the most listed stocks, technology accounts for 21% of the market cap of all listed stocks, globally, making it the most valuable sector. Standard Deviation in Equity/Firm Value 2. Book Value Multiples 3.

Risk Premium 115

Risk Premium Dividends Start-ups Corporate Finance 115

Musings on Markets

FEBRUARY 23, 2025

The table below computes debt to capital ratios, in book and market terms, by sector and sub-region: I would begin by separating the financial sector from the rest of the market, since debt to banks is raw material, not a source of capital.

Equity 75

Equity EBITDA Risk Premium Gross Debt 75