Equilest

AUGUST 6, 2023

Key Financial Ratios: Ratios such as Price-Earnings Ratio (P/E), Price-to-Book Ratio (P/B), and Debt-to-Equity Ratio provide valuable insights into the company's performance and market position. Liquidation Value: This method assesses the value of the company's assets if they were to be sold off in a liquidation scenario.

Discounted Cash Flow 40

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

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

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

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

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

JULY 22, 2021

It affects my cash flows, but its effect on value is dwarfed by changes in assumptions about market size and share. The second is the cost of capital, a number that most valuation classes and books (including mine) belabor to the point of diminishing returns.

Marketability 99

Marketability Start-ups Equity Price to Book 99

Musings on Markets

MAY 7, 2023

Consequently, you can only value the equity in a bank, and by extension, the only pricing multiples you can use to price banks are equity multiples (PE, Price to Book etc.).

Banking 91

Banking Price to Book Dividends Book Value 91

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. The first is that if markets are efficient, the price to book ratios will reflect the quality of these companies.

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 Equity Marketability 100

Musings on Markets

JANUARY 26, 2025

In the next section, I look at stock returns for companies in different price to book deciles, in a simplistic assessment of the value premium. With both the size and value premiums, I will extend my assessment over time to see how (and why) these premiums have changed, with lessons for analysts and investors.

Price to Book 76

Price to Book Start-ups Book Value Marketability 76