Remove Equity Remove Price to Book Remove Technology
article thumbnail

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.

article thumbnail

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

Musings on Markets

In my second data update post from the start of this year , I looked at US equities in 2022, with the S&P 500 down almost 20% during the year and the NASDAQ, overweighted in technology, feeling even more pain, down about a third, during the year. US Equities in 2023: Into the Weeds! that was lost last year.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Interest Rates, Earning Growth and Equity Value: Investment Implications

Musings on Markets

The first quarter of 2021 has been, for the most part, a good time for equity markets, but there have been surprises. Those rates stayed low through the rest of 2020, even as equity markets recovered and corporate bond spreads fell back to pre-crisis levels. to close to zero, and the ten-year T.Bond rate declining to close to 0.70%.

Equity 52
article thumbnail

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. Searching for stocks with low price-to-book ratios was a good indication of a potential bargain. Comment: The importance of (and challenges with) valuing intangibles.

article thumbnail

M&A Valuation Methods: Your Essential Guide with 7 Key Methods

Valutico

Special considerations for valuing M&A deals include synergies, regulatory issues, economic conditions, tax implications, technology/IP valuation, financing structure, buyer type, and purchase price allocation. Other techniques like Leveraged Buyout (LBO) and Real Options Valuation offer unique perspectives on valuation.

article thumbnail

29 Valuation Interview Questions and Answers: Mastering the Art of Crackling Interviews

Equilest

Candidates should highlight their commitment to staying updated on industry trends, regulations, and emerging technologies. 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. What is Free Cash Flow to Equity?

article thumbnail

Is Hyundai’s Parallel Strategy a Potent Value Play?

Andrew Stolz

Book value is the value attributable to shareholders in case the company sells all its assets and repays its liabilities (also called liquidation value). A price-to-book ratio of less than 1x indicates that the market values the net assets less than the balance sheet suggests. What does a PB-ratio of less than 1x indicate?

EBIT 52