Remove Equity Remove Marketability Remove Price to Book
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Dark Accounting Matter

Harvard Corporate Governance

The S&P 500 currently trades at a price to book value of 4.2, suggesting that book value accounts for less than 20% of the S&P 500’s market value. The remaining 80%, appears nowhere in these firms’ balance sheets—it is invisible to contemporary accounting techniques and constitutes “dark accounting matter.”

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Market Resilience or Investors In Denial? A Mid-year Assessment for 2023!

Musings on Markets

I am not a market prognosticator for a simple reason. I am just not good at it, and the first six months of 2023 illustrate why market timing is often the impossible dream, something that every investor aspires to be successful at, but very few succeed on a consistent basis.

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A Follow up on Inflation: The Disparate Effects on Company Values!

Musings on Markets

In my last post , I discussed how inflation's return has changed the calculus for investors, looking at how inflation affects returns on different asset classes, and tracing out the consequences for equity values, in the aggregate. The former is short hand for the small cap premium and the latter is the proxy for the value factor in returns.

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Good (Bad) Banks and Good (Bad) Investments: At the right price.

Musings on Markets

While differentiating between good and bad banks can be straightforward, it does not follow that buying good banks and selling bad banks is a good investment strategy, since its success depends entirely on what the market is incorporating into stock prices. All Equity, All the time!

Banking 82
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Japan Megabanks’ Strategic Share Sale Marks Big Priority Shift

Global Finance

Significantly, Mizuho CEO Masahiro Kihara said the bank will either pass on the proceeds from its sales of equity holdings to investors as dividends or invest them in growth-directed activities, and Sumitomo Mitsui aims to reduce the market value of its equity holdings to less than 20% of the value of its consolidated net assets.

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The Importance of (and challenges with) Valuing Intangibles

IVSC

Jeremy Stuber is a global equity analyst at Newton Investment Management , leading on valuation and accounting issues across all sectors. Jeremy Stuber chairs the Corporate Reporting Users’ Forum (CRUF) UK and co-chairs the Capital Markets Advisory Committee (CMAC). Comment: The importance of (and challenges with) valuing intangibles.

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Data Update 3: Inflation and its Ripple Effects!

Musings on Markets

By the end of 2021, it was clear that this bout of inflation was not as transient a phenomenon as some had made it out to be, and the big question leading in 2022, for investors and markets, is how inflation will play out during the year, and beyond, and the consequences for stocks, bonds and currencies.