Musings on Markets

MAY 20, 2022

In my last post , I discussed how inflation's return has changed the calculus for investors, looking at how inflation affects returns on different asset classes, and tracing out the consequences for equity values, in the aggregate.

Price to Book 102

Price to Book Dividends Beta Equity 102

Chris Mercer

AUGUST 1, 2022

This eleventh post in the Deja Vu series involving restricted stock studies addresses an issue that is rarely mentioned in the context of the studies – of the impact of dividends on restricted stock discounts (RSDs). This 2008 version had information on 477 restricted stock transactions, up from 430 transactions in the 2004 version.

Dividends 52

Dividends Appraisal Marketability 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. Beta & Risk 1.

Dividends 105

Dividends Risk Premium Equity Book Value 105

Brian DeChesare

OCTOBER 12, 2022

If you search for “how to start a private equity firm” online, you’ll find results that range from useless to tangentially useful to occasional nuggets of real wisdom. That said, much of it is better than the junk found on generic websites about how to start a hedge fund. How Does It Work?

Private Equity Firm 59

Private Equity Firm Equity Start-ups Marketability 59

Musings on Markets

JANUARY 17, 2024

Heading into 2023, US equities looked like they were heading into a sea of troubles, with inflation out of control and a recession on the horizon. While stocks had their ups and downs during the year, they ended the year strong, and recouped, at least in the aggregate, most of the losses from 2022. increase in market capitalization.

Risk Premium 79

Risk Premium Start-ups Equity Treasury 79

Musings on Markets

SEPTEMBER 27, 2022

In my early 2021 posts on inflation, I argued that while the higher inflation that we were just starting to see could be explained by COVID and supply chain issues, prudence on the part of policy makers required that it be taken as a long term threat and dealt with quickly. in the NY Fed survey. in the NY Fed survey.

Risk Premium 97

Risk Premium Treasury Start-ups Equity 97

Musings on Markets

AUGUST 19, 2024

My version of the corporate life cycle is built around six stages with the first stage being an idea business (a start-up) and the last one representing decline and demise. Here again, the problem is that high growth industry groups begin to mature, just as companies do, and this has been true for some segments of the tech sector.

Corporate Finance 119

Corporate Finance Finance Start-ups Dividends 119

Musings on Markets

MAY 7, 2023

In this post, I will begin by looking at how to value banks and follow up with an examination of investor views of banking have changed, by looking at pricing, before examining divergences in how banks are priced in the market today. All Equity, All the time!

Banking 82

Banking Price to Book Dividends Book Value 82

Musings on Markets

MAY 6, 2022

In most time periods, those recalibrations and resets tend to be small and in both directions, resulting in the ups and downs that pass for normal volatility. Clearly, we are not in one of those time periods, as markets approach bipolar territory, with big moves up and down.

Risk Premium 102

Risk Premium Treasury Start-ups Equity 102

Musings on Markets

JULY 17, 2023

At the start of the year, the consensus of market experts was that this would be a difficult year for markets, given the macro worries about inflation and an impending recession, and adding in the fear of the Fed raising rates to this mix made bullishness a rare commodity on Wall Street. That pessimism was not restricted to market outlooks.

Marketability 98

Marketability Risk Premium Start-ups Treasury 98

Musings on Markets

FEBRUARY 8, 2022

In this post, I will start with a working definition of riskt that we can get some degree of agreement about, and then look at multiple measures of risk, both at the company and country level. In closing, I will talk about some of the more dangerous delusions that undercut good risk taking. What is risk?

Risk Premium 90

Risk Premium Beta Start-ups Equity 90

Value Scout

FEBRUARY 24, 2023

Private equity firms provide meaningful investment capital to growth-oriented businesses. Unlike venture capital firms, they do not invest primarily in start-ups. Businesses seeking expansion, change of investors, or even exit may benefit from private equity firms.

Private Equity Firm 52

Private Equity Firm Equity Start-ups Dividends 52

Brian DeChesare

OCTOBER 26, 2022

A long time ago, we received one complaint/criticism more than any other: “All your models start from templates ! What about case studies where I have to start from a blank Excel sheet and do not get any data, formatting, or schedules?”. usually takes at least 30 minutes and sometimes up to several hours.

Dividends 72

Dividends Start-ups Finance Equity 72

Brian DeChesare

JANUARY 3, 2024

My portfolio did “OK” (up 10% for the year), but it greatly underperformed the S&P 500 , which was up 24%. With better decisions, I could have been up 15 – 20% for the year and slightly above my levels from 2 years ago. Gold did well (up around 13%), but I had 10% or less in it the whole time.

Marketability 59

Marketability Start-ups Equity Dividends 59

Musings on Markets

FEBRUARY 27, 2022

In this post, I will look at corporate profitability, in all its different dimensions, and how companies across the globe, and across industries, measured up in the most recent years. As companies from around the globe look to Asia for growth, the ensuing competition is pushing margins down there, relative to the rest of the world.

Start-ups 98

Start-ups Equity Book Value Marketability 98

Musings on Markets

JANUARY 8, 2022

To start the year, I returned to a ritual that I have practiced for thirty years, and that is to take a look at not just market changes over the last year, but also to get measures of the financial standing and practices of companies around the world. Happy New Year, and I hope that 2022 brings you good tidings! Sometimes, less is more!

Risk Premium 99

Risk Premium Start-ups Market Capitalization Corporate Finance 99

Musings on Markets

SEPTEMBER 5, 2024

With technology speeding up the filing process, a 2002 rule changed those requirements to 60 days, for annual reports, and 40 days for quarterly reports, for companies with market capitalizations exceeding $700 million. The pre-game show is not restricted to analysts and investors, and markets partake in the expectations game in two ways.

Marketability 133

Marketability Start-ups Discounted Cash Flow Market Capitalization 133

Brian DeChesare

AUGUST 31, 2022

Convertible bonds are hybrid instruments with elements of debt and equity, and some groups that trade convertible bonds also combine elements of S&T and IB. But before delving into the best candidates for these roles, typical trades, careers, and more, let’s start with the basic definitions: What is a Convertible Arbitrage Hedge Fund?

Banking 89

Banking Risk-free Rate Equity Start-ups 89

Benzinga

MAY 30, 2024

Yesterday, ConocoPhillips also disclosed that it expects to increase its ordinary base dividend per share by 34% to $0.78 starting in the fourth quarter of 2024. It targets repurchasing over $7 billion in shares in the first full year (up from over $5 billion standalone) and over $20 billion in shares in the first three years.

Enterprise Value 52

Enterprise Value Dividends Start-ups Equity 52

Musings on Markets

SEPTEMBER 9, 2024

Second, they have all been in the news in the last few weeks, with Starbucks getting a new CEO, Walgreens announcing that they will be shutting down hundreds of their stores and Intel coming up in the Nvidia conversation, often as a contrast. and that lesson gets reinforced in business schools and books about business success.

Start-ups 132

Start-ups Marketability Market Capitalization Equity 132

Andrew Stolz

NOVEMBER 17, 2021

When I started in finance, buybacks were almost unheard of; now, companies prefer to distribute cash through buybacks. companies have distributed more money through buybacks than through dividends. Finally, some lazy managers may use buybacks as a tool to manipulate short-term returns on equity and the stock price.

Dividends 52

Dividends Capital Structure Banking Start-ups 52

Musings on Markets

NOVEMBER 9, 2021

As I have valued Tesla over the years, I have come to the realization that it is the most 'uncar-like" automobile company in the world, and its uniqueness shows up on two dimensions. Put simply, the company has been able to scale up more quickly, while reinvesting less in capacity, than any other automobile company.

Start-ups 101

Start-ups Dividends Marketability Market Capitalization 101

Brian DeChesare

JUNE 1, 2022

Traditionally, the sector was viewed as a defensive play for investors who wanted stable dividends and no drama. But over time, trends like market liberalization, deregulation, the shift to renewables, and the ESG religion “movement” have shaken up a sleepy sector.

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

NOVEMBER 4, 2022

Facebook: Filling in the Background It is worth noting that in good times, when earnings are rising and stock prices are upward bound, investors do not seem to have much interest in corporate governance, and it is only when the numbers start to move against them, that they rediscover the importance of the topic.

Start-ups 105

Start-ups Market Capitalization Marketability Dividends 105

Musings on Markets

JANUARY 20, 2021

With equities, the metric that has been in use the longest is the PE ratio, modified in recent years to the CAPE, where earnings are normalized (by averaging over time) and sometimes adjusted for inflation. The other is the corporate bond market is under estimating both the risk and the consequences of default.

Risk Premium 52

Risk Premium Risk-free Rate Equity Dividends 52

Brian DeChesare

AUGUST 10, 2022

But before delving into the exit opportunities and the long-term outlook, let’s start with the fundamentals: Oil & Gas Investment Banking Defined. Midstream: 85 (mix of asset deals, M&A, debt, and even some private equity activity). Downstream: 31 (mix of everything, but no private equity activity).

Banking 98

Banking EBITDA Dividends Equity 98

Musings on Markets

DECEMBER 21, 2022

Starting in late January 2023, I will be back in the classroom, teaching valuation and corporate finance to the MBAs and valuation to the undergraduates, and these classes will continue through May 2023. The class starts with a question of what the end game should be for a business (profitability, value, social good?),

Corporate Finance 99

Corporate Finance Finance Start-ups Marketability 99

Musings on Markets

JANUARY 6, 2023

In my last post, I talked about the ritual that I go through every year ahead of my teaching each spring, and in this one, I will start on the first of a series of posts that I make at the start of each year, where I look at data, both macro and company-level. That is not true!

Risk Premium 52

Risk Premium Dividends Start-ups EBITDA 52

Brian DeChesare

JANUARY 19, 2022

According to some, you do almost no modeling or technical work in this group, and it’s one of the easier jobs in IB, similar equity or debt capital markets. But if you read other accounts, FSG runs models, Analysts get hands-on technical work, and the hours could be longer and more stressful because your clients are private equity firms.

Private Equity Firm 94

Private Equity Firm Banking Equity Finance 94

Andrew Stolz

JANUARY 17, 2022

Value play with strong dividend growth potential. However, most recently, the 50 DMA started to rise, and it seems like it can cross the 200DMA very soon. Instead of exporting to China, Volvo aims to ramp up sales by establishing a production site in the country. With the acquisition, Volvo aims to ramp up its sales in China.

Marketability 52

Marketability Dividends Net Debt Start-ups 52

Musings on Markets

OCTOBER 12, 2023

The effect of impact investing in the inclusionary and exclusionary paths is through the stock price , with the buying (selling) in inclusionary (exclusionary) investing pushing stock prices up (down), which, in turn, decreases (increases) the costs of equity and capital at these firms. in the 1998-2010 time period to 5.95

Market Capitalization 103

Market Capitalization Enterprise Value Start-ups Marketability 103

Andrew Stolz

FEBRUARY 8, 2022

Currently, revenue from broadband makes up 20% of its service revenue. In March 2021, the China-backed company Dito started its commercial operations. In 3Q21, it recorded 51m users, up 10x compared to 2019. In 2019 and 2020, Globe recognized more than PHP4bn equity loss from its investment in Mynt. In 2021, it reached 1.4m

Start-ups 52

Start-ups Dividends Equity Marketability 52

Brian DeChesare

APRIL 24, 2024

But then recruiting moved up, the MBA process became more structured, and now we have 4-year-olds aiming for “Target Kindergartens” so they can eventually get into investment banking ~15 years in the future. I’ll answer these questions, but, as usual, we need to start with some descriptions: Table Of Contents What is a Pre-MBA Internship?

Start-ups 59

Start-ups Banking Finance Equity 59

Valutico

DECEMBER 15, 2022

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. Common Types of Equity Valuation Multiples. Which Year to Use?

Precedent Transaction Analysis 52

Precedent Transaction Analysis EBITDA Comparable Company Analysis Enterprise Value 52

Valutico

DECEMBER 15, 2022

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. Common Types of Equity Valuation Multiples. Which Year to Use?

Precedent Transaction Analysis 52

Precedent Transaction Analysis EBITDA Comparable Company Analysis Enterprise Value 52

Reynolds Holding

SEPTEMBER 29, 2024

Comment: If an applicable corporation sells a corporate subsidiary, that corporate subsidiary can get a fresh start in determining its applicable corporation status. In determining how to implement this rule, Treasury considered a “top-down” approach and a “bottom-up” approach for determining the adjustment.

Treasury 45

Treasury Dividends Start-ups Fair Market Value 45