Valutico

OCTOBER 17, 2022

We have performed a Trading Comparables analysis and a discounted cash flow using the Flow to Equity Approach. In the fo rmer, we compared Porsche with peers such as BMW, Mercedes-Benz, Ferrari and Ford using thethe EV/EBITDA and the EV/EBIT multiples. Our Flow to Equity analysis on the other hand suggests that Porsche is undervalued.

Discounted Cash Flow 52

Discounted Cash Flow EBIT Equity EBITDA 52

Musings on Markets

JANUARY 5, 2024

Return on Equity 1. Equity Risk Premiums 2. Costs of equity & capital 4. Costs of equity & capital 1. Fundamental Growth in Equity Earnings 2. Return on Equity 2. Standard Deviation in Equity/Firm Value 2. EBIT & EBITDA multiple s 5. Beta & Risk 1. Debt Details 1. Buybacks 2.

Dividends 105

Dividends Risk Premium Equity Book Value 105

Biz Equity

JANUARY 12, 2023

Debt-to-equity : Compares a company’s total debt to total equity. The formula for debt-to-equity ratio is total liabilities divided by total shareholder equity. The higher the ratio, the more risk creditors, lenders and investors face, which is why they tend to lean toward companies with lower debt-to-equity ratios.

Business Valuation 52

Business Valuation EBIT Equity Firm Value 52

Valutico

FEBRUARY 8, 2023

by using the Discounted Cash Flow method, specifically our Flow-to-Equity approach, as well as a Trading Comparables analysis. The Flow-to-Equity analysis produced a value of $308 billion using a Cost of Equity of 9.2%. For our Trading Comparables we selected similar peers such as Mastercard, PayPal and American Express.

Discounted Cash Flow 52

Discounted Cash Flow EBIT Equity EBITDA 52

Valutico

DECEMBER 15, 2022

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. An example of an enterprise multiple: EV/Sales, EV/EBITDA, EV/EBIT and practically all non-financial multiples (e.g.

Precedent Transaction Analysis 52

Precedent Transaction Analysis Comparable Company Analysis EBITDA Enterprise Value 52

Valutico

DECEMBER 15, 2022

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. An example of an enterprise multiple: EV/Sales, EV/EBITDA, EV/EBIT and practically all non-financial multiples (e.g.

Precedent Transaction Analysis 52

Precedent Transaction Analysis Comparable Company Analysis EBITDA Enterprise Value 52

Valutico

MARCH 1, 2023

by using the Discounted Cash Flow method, specifically our Flow-to-Equity approach, as well as a Trading Comparables analysis. The Flow-to-Equity analysis produced a value of GBP 102 (USD 123) billion using a Cost of Equity of 7.7%.

Discounted Cash Flow 52

Discounted Cash Flow Net Debt EBIT Equity 52

Valutico

NOVEMBER 14, 2022

We analyzed TotalEnergies by using the Flow to Equity method and a Trading Comparables analysis. The Flow to Equity analysis produced a value of €272 billion, with a Cost of Equity of 8.9%. We used a wide range of peers for this analysis, including the likes of Equinor, Shell and Exxon Mobil.

EBIT 52

EBIT Equity Dividends EBITDA 52

Valutico

NOVEMBER 14, 2022

We analyzed TotalEnergies by using the Flow to Equity method and a Trading Comparables analysis. The Flow to Equity analysis produced a value of €272 billion, with a Cost of Equity of 8.9%. We used a wide range of peers for this analysis, including the likes of Equinor, Shell and Exxon Mobil.

EBIT 52

EBIT Equity Dividends EBITDA 52

Musings on Markets

JANUARY 6, 2023

I do report on a few market-wide data items especially on risk premiums for both equity and debt. I also report on pricing statistics, again broken down by industry grouping, with equity (PE, Price to Book, Price to Sales) and enterprise value (EV/EBIT, EV/EBITDA, EV/Sales, EV/Invested Capital) multiples. Cost of Equity 1.

Risk Premium 52

Risk Premium Dividends Start-ups EBITDA 52

Equilest

NOVEMBER 25, 2023

Understanding the Concept: In essence, FCFF encapsulates the cash that can be distributed to both debt and equity holders after meeting operational needs and capital expenditures. The resulting value represents the cash available to all contributors of capital—both debt and equity. What is Free Cash Flow to Equity?

Discounted Cash Flow 52

Discounted Cash Flow Dividends Enterprise Value Terminal Value 52

Andrew Stolz

JANUARY 12, 2022

If it can maintain a 6-7% EBIT margin it changes the market’s assessment of the company. If it can maintain a 6-7% EBIT margin, then this could be a catalyst for share price performance. Shareholders should expect a higher return on equity. Mainly from fierce price competition, higher labor costs and the recent chip shortage.

EBIT 52

EBIT Price to Book Book Value Liquidation Value 52

Valutico

DECEMBER 19, 2022

The Discounted Cash Flow analysis produced a value of €189 billion using a Cost of Equity of 6.7%. . The Trading Comparables analysis resulted in a valuation range of €98 to €222 billion, by applying the observed trading multiples EV/EBITDA, EV/EBIT and P/E.

Discounted Cash Flow 52

Discounted Cash Flow EBITDA EBIT Market Capitalization 52

Valutico

DECEMBER 19, 2022

The Discounted Cash Flow analysis produced a value of €189 billion using a Cost of Equity of 6.7%. . The Trading Comparables analysis resulted in a valuation range of €98 to €222 billion, by applying the observed trading multiples EV/EBITDA, EV/EBIT and P/E.

Discounted Cash Flow 52

Discounted Cash Flow EBITDA EBIT Market Capitalization 52

Valutico

OCTOBER 28, 2022

We used the observed trading multiples EV/EBITDA, EV/EBIT and P/E of a group of similar listed peers for our Trading Comparables analysis, arriving at a valuation range of $193 billion to $237 billion. We valued Alibaba using the Discounted Cash Flow method, specifically our DCF WACC approach, as well as a Trading Comparables analysis.

Discounted Cash Flow 52

Discounted Cash Flow EBIT Market Capitalization EBITDA 52

Valutico

AUGUST 23, 2022

Considering TSMC’s stable dividend policy, we have also considered the Dividend Discount Model (Cost of Equity of 6.1%), which delivers a valuation of TWD 12 billion (~USD 400 billion). . TSMC outperforms these peers on expected sales growth and EBIT margins thus the result comes as no surprise. .

Dividends 52

Dividends EBIT Marketability Equity 52

Reynolds Holding

NOVEMBER 9, 2023

One notable development in executive performance-based pay is the surge of performance-vesting equity grants. These grants provide executives with company stock as a component of their pay, but for the grant to vest and the executive to receive the equity, the company must successfully meet predefined performance criteria.

Equity 40

Equity EBITDA EBIT Marketability 40

Valutico

SEPTEMBER 22, 2023

This method is common in industries where valuations are commonly expressed as a multiple of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) or Earnings Before Interest and Taxes (EBIT). It represents the total market value of the company’s equity. This approach allows for better investment decisions.

Discounted Cash Flow 52

Discounted Cash Flow Intangible Assets Book Value Asset-based Approach 52

Reynolds Holding

JUNE 13, 2022

This law, which regulated all Norwegian public liability companies (“ Allmennaksjeselskaper” or ASA, which can raise equity capital from the public), requires at least 40 percent of directors to be male or female. The law took effect in December 2005 and gave companies two years to comply – or face forced liquidation.

Firm Value 45

Firm Value EBIT Marketability Compliance 45

Valutico

DECEMBER 4, 2023

The DCF analysis yielded an equity value of USD 125 billion, predicated on a WACC of 10.1%. billion to USD 150 billion, by utilizing observed metrics such as EV/EBITDA, EV/EBIT, and P/E ratios. Additionally, the Trading Comparables analysis generated a valuation range of USD 85.4

Discounted Cash Flow 52

Discounted Cash Flow EBIT Start-ups EBITDA 52

Andrew Stolz

NOVEMBER 21, 2021

The repurchase has helped to keep return on equity above its target of 10%. It is deducted from equity when the company buys back its own shares. Competitors like VW and GM only achieve EBIT margin between 5 and 7%. Despite the pandemic, it stuck to its strategy. FVMR Scorecard – Toyota. Attractiveness is based on four elements.

Dividends 52

Dividends EBIT Treasury Equity 52

Andrew Stolz

JANUARY 19, 2022

Instead, EasyJet decided in Sep 21 to issue GBP1.2bn in equity through a rights offering. 4-5 years from now, this segment could contribute GPB100m, equaling around 15-20% of overall EBIT. Leveraged increased significantly but was partly offset by the equity right offering. The offer tried to exploit the discounted share price.

Start-ups 52

Start-ups EBIT Equity Business Valuation 52

Valutico

OCTOBER 20, 2022

Ce = Cost of Equity. Rm – Rf) = Equity Market Risk Premium. Cp = Cost of Equity Premium. Ce = Cost of Equity. E = Equity . Depending on the exact methodology and discount rate used, this could be the Enterprise Value or Equity Value. Tax (from tax rate and EBIT). Cost of Equity.

Discounted Cash Flow 52

Discounted Cash Flow Terminal Value Weighted Average Cost of Capital Net Present Value 52

Andrew Stolz

JANUARY 17, 2022

In 2020, its net-debt to equity ratio stood at 0.9x. EBIT margin expansion in 21E likely to stay. However, increased CAPEX for capacity expansion and battery development lead to increase in net fixed assets again. The company is moderately leveraged. Cash flow statement – Volvo. Ratios – Volvo. Free cash flow – Volvo.

Marketability 52

Marketability Dividends Net Debt Start-ups 52

Andrew Stolz

FEBRUARY 7, 2022

The company has almost no long-term debt, thought is does have short term debt, leading to a negative net debt-to-equity ratio of 0.7x. EBIT margin on a slightly lower level given an increase of low-cost manufacturers. Ratios – Radiant Opto-Electronics Corporation. Long-term share price performance potential.

Dividends 52

Dividends Net Debt EBIT Marketability 52

Andrew Stolz

NOVEMBER 28, 2021

It raises $1bn new capital through the private equity fund TPG Rise Climate for a 11% stake. It will be a challenge for the company to drive its EBIT margin to the industry average of 7-9%. Tata will set up a new subsidiary in 2020, in its attempt to move forward EV. This entity is separate from other passenger vehicles.

Dividends 52

Dividends EBIT Equity Business Valuation 52

Valutico

JULY 3, 2023

When comparing financial metrics, it is advisable to focus on those that directly impact valuation multiples commonly used in CCAs, such as EV/Sales, EV/EBITDA, P/E, and EV/EBIT. Profitability Ratios: Metrics such as operating margin, net profit margin, and return on equity (ROE) provide insights into the profitability of peer companies.

Market Capitalization 52

Market Capitalization Marketability Comparable Company Analysis EBIT 52

Brian DeChesare

SEPTEMBER 11, 2024

Renewable Energy Investment Banking Definition: In renewable energy investment banking, bankers advise companies in the solar, wind, biofuel, storage, battery, smart grid, electric vehicle, hydrogen, hydroelectric, and carbon capture verticals on equity and debt issuances, asset deals, and mergers and acquisitions.

Banking 59

Banking Finance Start-ups Equity 59

Valutico

OCTOBER 7, 2024

Valuation is crucial for startups for securing funding, determining equity distribution, guiding strategic decisions, and assessing exit potential. Key takeaways: A startup is usually a young company aiming to develop unique products/services in a rapidly changing market, characterized by innovation and scalability.

Discounted Cash Flow 52

Discounted Cash Flow Marketability Equity Technology 52

Valutico

AUGUST 17, 2022

With Valutico’s new development, practitioners can quickly perform a VC valuation based on EV/Sales, EV/EBITDA, EV/EBIT and P/E multiples as a useful addition to other research on the company and the industry. The calculation of these discount rates are based on the observed betas of similar listed peer companies.

Start-ups 52

Start-ups EBIT Weighted Average Cost of Capital Discounted Cash Flow 52

Valutico

NOVEMBER 7, 2023

Users can also delve into in-depth deal specifics, like stake purchases, deal amounts, and crucial multiples such as EV/Sales, EV/EBITDA, EV/EBIT and P/E. Valutico’s customers include professionals in Banking, M&A, Corporate Finance, Audit, Tax, Accounting, Private Equity, as well as Venture Capital.

Marketability 52

Marketability Finance EBIT Business Valuation 52

Musings on Markets

OCTOBER 25, 2022

Since a business can raise capital from owners (equity) and lenders (debt), the free cash flows that you compute can be to just the equity investors in the business, in which case it is free cash flow to equity , or to all capital providers in the business, as free cash flow to the firm.

Dividends 107

Dividends EBITDA Equity Start-ups 107

Musings on Markets

JANUARY 10, 2025

Thus, as you peruse my historical data on implied equity risk premiums or PE ratios for the S&P 500 over time, you may be tempted to compute averages and use them in your investment strategies, or use my industry averages for debt ratios and pricing multiples as the target for every company in the peer group, but you should hold back.

Risk Premium 119

Risk Premium Dividends Start-ups Corporate Finance 119

Global Finance

MARCH 2, 2025

Its going to change your equity, your retained earnings, your profits, your earnings per share, your EBIT, your EBITDAall these numbers would change. Because the trouble is, if you change a few numbers in revenue, its going to change a lot of numbers in accounting. And its incredibly difficult.

Start-ups 112

Start-ups Finance EBIT Corporate Finance 112

Benzinga

MARCH 13, 2025

On Wednesday, Murphy Oil Corporation (NYSE: MUR ) disclosed that its subsidiary had signed a Purchase and Sale deal to acquire floating production storage and offloading vessel (FPSO) from BW Offshore for gross purchase price of $125 million.

EBIT 59

EBIT Equity 59

Musings on Markets

FEBRUARY 23, 2025

The Debt Trade off As a prelude to examining the debt and equity tradeoff, it is best to first nail down what distinguishes the two sources of capital. To me, the key distinction between debt and equity lies in the nature of the claims that its holders have on cash flows from the business.

Equity 75

Equity EBITDA Risk Premium Gross Debt 75

Brian DeChesare

APRIL 16, 2025

Scenario #1 is the worst and could reduce many companies overall EBIT or EBITDA margins by 50%+, Scenario #2 is moderately bad, and Scenario #3 is neutral but unlikely in real life. Anyone on sales & trading desks such as rates , equity derivatives , currencies, or commodities. This is the neutral case.

Finance 64

Finance Marketability Banking Start-ups 64