Musings on Markets

AUGUST 5, 2023

As part of that obsession, since September 2008, I have estimated an equity risk premium for the S&P 500 at the start of each month, and not only used that premium, when valuing companies during that month, but shared my estimate on my webpage and on social media.

Risk Premium 98

Risk Premium Equity Start-ups Treasury 98

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

Musings on Markets

JANUARY 17, 2024

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. Stocks ended the year well, with November and December both delivering strong up movements, and while this left investors feeling good about the year, it was a rocky year.

Risk Premium 79

Risk Premium Start-ups Equity Treasury 79

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. Note the differences between the bank FCFE and bank dividend discount models.

Banking 91

Banking Price to Book Dividends Book Value 91

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 99

Risk Premium Treasury Start-ups Equity 99

Musings on Markets

JANUARY 11, 2024

Continuing an annual ritual of long standing, ahead of starting my spring teaching at NYU starting in a couple of weeks, I would like to invite you, if you are interested, to come along for the ride. In short, you can start with the regular class in January 2024 and stretch out the class over 12 months or 18 months, if you want to.

Corporate Finance 145

Corporate Finance Finance Start-ups Dividends 145

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

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

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 134

Marketability Start-ups Discounted Cash Flow Market Capitalization 134

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. At the start of 2022, the ten sectors (US) with the highest and lowest relative risk (unlettered betas), are shown below. What is risk?

Risk Premium 95

Risk Premium Beta Start-ups Equity 95

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

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. This pushes companies to buy back shares rather than issue dividends. Chart from Kroen (2021).

Dividends 52

Dividends Capital Structure Banking Start-ups 52

ThomsonReuters

JANUARY 9, 2024

Setting up your business as a C corporation (C corp) has many benefits, including greater ownership flexibility and more growth potential than an S corporation (S corp) or a Limited Liability Company (LLC). In any case, dividends from a C corp are reported on Form 1099-DIV , and these forms are due each year on Mar.

Dividends 52

Dividends Start-ups 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 134

Start-ups Marketability Market Capitalization Equity 134

A Neumann & Associates

JUNE 9, 2023

Where do I start? Ideally, you will want to start thinking about and planning the process several years before you want to sell. It is important to know that the process of selling your business can take up to 8 to 12 months. What is my company worth? What is the process? How do I find the right buyers?

Mergers & Acquisitions 98

Mergers & Acquisitions Start-ups Dividends Marketability 98

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

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

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

Andrew Stolz

APRIL 17, 2020

Rather it is based on investors’ critical thinking, due diligence, and using methods that combine value and growth strategies such as Peter Lynch’s PEG and dividend adjusted-PEG ratios. For example, Priceline.com fell from $94 per share to less than $4 per share within eight months starting from March 2000 to November 2000 (Kleinbard, 2000).

Dividends 52

Dividends Discounted Cash Flow Start-ups Marketability 52

ThomsonReuters

MAY 6, 2022

If you offer a variety of tax and accounting services, you’ll likely have clients who aren’t signed up for all of them. Segment your client list into different services and approach them with an offer to sign up for any additional ones they don’t have. Reduce inefficient spending.

Accounting Firms 87

Accounting Firms Start-ups Marketability Dividends 87

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

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

ThomsonReuters

SEPTEMBER 8, 2023

Anyone starting a business should consult a qualified tax professional, such as an accountant or tax attorney, for advice on which corporate structure best fits their goals—but it helps to understand some of the factors that typically influence such decisions. How do you start a C corp? Instead, they pay up to 13.3%

Start-ups 75

Start-ups Compliance Dividends Business Enterprise 75

Andrew Stolz

FEBRUARY 10, 2022

So far, the construction progress is on track and the terminal could start operations by late 2022 already. Philippine energy companies are required to start green transition soon. It makes up 20% of the country’s total renewable energy capacity. FGEN paid out stable and growing dividends. metric tons. Ratios – First Gen.

Dividends 52

Dividends Start-ups Marketability Business Valuation 52

Andrew Stolz

FEBRUARY 9, 2022

PLDT has started much earlier with its fiber optics rollout than its main competitor Globe. In March 2021, the China-backed company Dito started its commercial operations and challenges the duopoly. Its investment in the e-wallet PayMaya is still not profitable yet but could start deliver profits in 22E. subscribers.

Marketability 52

Marketability Dividends Start-ups Banking 52

Andrew Stolz

FEBRUARY 2, 2022

Attractive dividend yield could rise above 5%. Its manufacturing plants in the US and Thailand could start operations by 2023. Investments in AI and semiconductor drive up costs. Attractive dividend yield could rise above 5%. Also, the dividend yield might be worth a look from an investor perspective. Conclusions.

Dividends 52

Dividends Start-ups Marketability Technology 52

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. Not surprisingly, then, the net effect of growth will depend on how much is reinvested back, relative to what the company can harvest as future growth.

Start-ups 99

Start-ups Equity Book Value Marketability 99

Musings on Markets

DECEMBER 15, 2021

At the start of every semester for as long as I can remember, I have invited people to sit in informally on my classes at NYU or take the shorter online versions on my website. If you have a bigger budget, I would try to emulate Professor Andrew Lo , who described his astounding set up for teaching last year.)

Corporate Finance 83

Corporate Finance Finance Start-ups Technology 83

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? Talent at investing, execution, AND sales.

Private Equity Firm 59

Private Equity Firm Equity Start-ups Marketability 59

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. However, in 2Q21, Mynt started to record a profit, and this could grow exponentially. In 2021, it reached 1.4m

Start-ups 52

Start-ups Dividends Equity Marketability 52

ThomsonReuters

JUNE 14, 2021

“That’s because a partner can earn several types of income on Schedule K-1, including rental income from a partnership’s real estate holdings and income from bond interest and stock dividends.”. This reduces the time needed to process a K-1 form from up to an hour to about 15 seconds, Hurd says.

Compliance 98

Compliance Dividends Start-ups Technology 98

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

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 112

Market Capitalization Enterprise Value Start-ups Marketability 112

Brian DeChesare

AUGUST 31, 2022

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? If the stock price goes up or down by 10%, but the volatility stays the same, you might not earn or lose anything on the trade.

Banking 89

Banking Risk-free Rate Equity Start-ups 89

Musings on Markets

MARCH 8, 2023

This is the last of my data update posts for 2023, and in this one, I will focus on dividends and buybacks, perhaps the most most misunderstood and misplayed element of corporate finance. Viewed in that context, dividends as just as integral to a business, as the investing and financing decisions.

Dividends 102

Dividends Start-ups Corporate Finance Finance 102

Audit Board

AUGUST 3, 2022

Before we start celebrating what some have seen as softer-than-expected plans for audit reform, we need to be clear about what’s really coming and start preparing now. My 20+ years in audit and risk are bookended by US corporate reform at the start of the century and similar UK measures pending more than two decades later.

Start-ups 52

Start-ups Compliance Dividends Technology 52

Benzinga

APRIL 23, 2024

portfolio lease rate at 3/31/24 (40th consecutive quarter above 96.0%) 179,464 square feet of anchor space leasing currently lined up 12.2% portfolio lease rate at 3/31/24 (40th consecutive quarter above 96.0%) 179,464 square feet of anchor space leasing currently lined up 12.2% per share cash dividend. HIGHLIGHTS $11.0

Dividends 40

Dividends Intangible Assets Start-ups EBITDA 40