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 82

Banking Price to Book Dividends Book Value 82

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

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. Download past implied ERP That said, there are two reasons for concern.

Risk Premium 98

Risk Premium Risk-free Rate Start-ups Equity 98

Musings on Markets

JULY 17, 2023

In the table below, I list the ten worst performing and best performing industry groups, based purely on market capitalization change in the first half of 2023: Download market performance in 2023, by industry The worst performing industry groups are in financial services and energy, with oilfield services companies being the worst impacted.

Marketability 98

Marketability Risk Premium Start-ups Treasury 98

Andrew Stolz

JANUARY 12, 2022

Download the full report as a PDF. Price signal unclear, but volume supports bullish signal. Book value is the value attributable to shareholders in case the company sells all its assets and repays its liabilities (also called liquidation value). Download the full report as a PDF. Low PB multiple of 0.8x

EBIT 52

EBIT Price to Book Book Value Liquidation Value 52

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

Musings on Markets

MARCH 19, 2022

Slicing the data based on sector yields the following: Against, there are no surprises, with energy being the only sector to post positive returns and with consumer discretionary and technology generating the most negative returns.

Start-ups 100

Start-ups Risk Premium Equity Market Capitalization 100