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.). Note the differences between the bank FCFE and bank dividend discount models.

Banking 63

Banking Price to Book Dividends Book Value 63

Musings on Markets

MAY 20, 2022

I then examine how equities have performed in the less than five months of 2022, where inflation has returned to the front pages. In 2022, the collective market capitalization of all US firms has dropped by 19.75% , with the bulk of the drop occurring after April 1, 2022.

Price to Book 96

Price to Book Dividends Beta Equity 96

Musings on Markets

JANUARY 19, 2022

In a post at the start of 2021 , I argued that while stocks entered the year at elevated levels, especially on historic metrics (such as PE ratios), they were priced to deliver reasonable returns, relative to very low risk free rates (with the treasury bond rate at 0.93% at the start of 2021). The year that was.

Risk Premium 80

Risk Premium Risk-free Rate Start-ups Equity 80

Musings on Markets

JULY 17, 2023

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. That pessimism was not restricted to market outlooks.

Marketability 95

Marketability Risk Premium Start-ups Treasury 95

Musings on Markets

JANUARY 6, 2023

At the company-level, I provide data on risk, profitability, leverage and dividends, broken down by industry-groups, to be used in both corporate finance and valuation. Standard deviation in stock price 2. Price to Book 3. High-Low Price Risk Measure 5. EV/Sales and Price/Sales 5. Cost of Equity 1.

Risk Premium 52

Risk Premium Dividends EBITDA Start-ups 52

Musings on Markets

FEBRUARY 4, 2023

The company's return on invested capital has steadily declined, even as it has scaled up, hovering just over 3% in 2021-2022. You see similar movements in the price to book, where the stock has gone from trading under book value to 6.7 times revenues in the most recent two years.

Start-ups 100

Start-ups Market Capitalization Marketability Equity 100