Musings on Markets

JANUARY 27, 2022

Measuring inflation is not as simple as it looks, and measures of inflation can vary depending on the basket of good/services used, the perspective adopted (consumer, producer, GDP deflator) and the sampling used to collect prices.

Risk-free Rate 99

Risk-free Rate Treasury Price to Book Start-ups 99

Musings on Markets

JULY 17, 2023

To the extent that some of that risk capital is coming back into the markets, equity markets have benefited, with benefits skewing more towards the companies and markets that were punished the most in 2022. trillion) to market capitalizations, regaining almost half of the value lost in last year's rout.

Marketability 98

Marketability Risk Premium Start-ups Treasury 98

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. While some of the companies in this data trace their existence back decades, there is a healthy proportion of younger companies, many in emerging markets and new industries.

Risk Premium 52

Risk Premium Market Capitalization Equity Start-ups 52

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.). The Pricing of Bank Equity You have heard me say this before, but I don't think there is any harm in repeating this.

Banking 91

Banking Price to Book Dividends Book Value 91

Musings on Markets

JANUARY 19, 2022

When you augment this price change with the dividends on the index during 2021, the total return on the S&P 500 for 2021 was 28.47%. The results are similar if you break stocks down based upon price to book ratios or revenue growth rates.

Risk Premium 99

Risk Premium Risk-free Rate Start-ups Equity 99

Musings on Markets

MARCH 19, 2022

The table below summarizes the market cap change, by region of the world: It is no surprise that Eastern Europe and Russia, which are in the eye of the hurricane, have seen the most damage to equities, but other than the Middle East, every other equity market in the world is down, with the US, EU and China shedding significant market capitalization.

Start-ups 100

Start-ups Risk Premium Equity Market Capitalization 100

Musings on Markets

MARCH 25, 2021

Interest Rates and Value As interest rates have risen, the discussion in markets has turned ito the effects that these rates will have on stock prices. Download data While the chart itself has too much noise to draw conclusions, the correlations that I have calculated provide more information.

Equity 52

Equity Risk-free Rate Treasury Start-ups 52