Musings on Markets

OCTOBER 6, 2023

Looking at the top ten companies in 2020 and 2023, you see the dominance of technology companies, many of which sell products that you cannot see, often in production facilities that are just as invisible. That would suggest that intangible assets are being valued and incorporated into balance sheets much more now than in the past.

Intangible Assets 128

Intangible Assets Book Value Equity Start-ups 128

Musings on Markets

JANUARY 5, 2024

Standard Deviation in Equity/Firm Value 2. Book Value Multiples 3. EBIT & EBITDA multiple s 5. Working capital needs Thus, I compute pricing multiples based on revenues (EV to Sales, Price to Sales), earnings (PE, PEG), book value (PBV, EV to Invested Capital) or cash flow proxies (EV to EBITDA).

Dividends 106

Dividends Risk Premium Equity Book Value 106

Musings on Markets

JANUARY 31, 2024

Before the sector gets targeted as being excessively profitable, it is also one that is subject to volatility, caused by swings in oil prices; in 2020, the sector was the worst performing on profitability, as oil prices plummeted that year. Does profitability vary across the globe?

Equity 82

Equity Book Value Start-ups Corporate Finance 82

Musings on Markets

FEBRUARY 27, 2022

To make comparisons, profits are scaled to common metrics, with revenues and book value of investment being the most common scalar. The Value of Growth As investor tastes have shifted from earnings power to growth, there has been a tendency to put growth on a pedestal, and view it as an unalloyed good, but it is not.

Start-ups 99

Start-ups Equity Book Value Marketability 99

Musings on Markets

FEBRUARY 27, 2023

Cash generating capacity : Debt payments are serviced with operating cash flows, and the more operating cash flows that firms generate, as a percent of their market value, the more that they can afford to borrow. Debt to EBITDA, Interest Coverage Ratios If debt to capital is not a good measure for judging over or under leverage, what is?

Equity 52

Equity EBITDA Start-ups Net Debt 52

Musings on Markets

MARCH 8, 2023

The same amount of cash is paid out in either case, the effects on equity are identical (in both book value and market value terms) and the operations of the company remain unchanged. Are there firms that are using debt to buy back stock and putting their survival at risk?

Dividends 102

Dividends Start-ups Corporate Finance Finance 102