Reynolds Holding

JUNE 13, 2022

As a social-policy instrument, forced board-gender balancing is in principle unrelated to firms’ economic performance. Nonetheless, imposing such a policy may have unintended consequences (positive or negative) for firm value, which is important for all of a firm’s constituencies – not only shareholders – to understand properly.

Firm Value 45

Firm Value EBIT Marketability Compliance 45

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 Equity EBIT Firm Value 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. Book Value Multiples 3. EBIT & EBITDA multiple s 5.

Dividends 105

Dividends Risk Premium Equity Book Value 105

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. PE & PEG 2.

Risk Premium 52

Risk Premium Dividends Start-ups EBITDA 52

Valutico

AUGUST 17, 2022

As some recent start-up valuations are falling amidst investor caution, this new development comes at an opportune time to positively impact how effectively financial firms value young businesses. For growth or mature SMEs, this discrepancy between the WACC of listed vs private companies is accounted for with a Cost of Equity Premium.

Start-ups 52

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

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 115

Risk Premium Dividends Start-ups Corporate Finance 115