Musings on Markets

OCTOBER 12, 2023

On the alternative energy front, as money has flowed into these companies, there has been a surge in enterprise value (equity and net debt) and market capitalization (equity value); I report both because impact investing can also take the form of green bonds, or debt, at these companies.

Market Capitalization 114

Market Capitalization Enterprise Value Start-ups Marketability 114

Musings on Markets

JANUARY 9, 2021

The second was that, starting mid-year in 2020, equity markets and the real economy moved in different directions, with the former rising on the expectations a post-virus future, and the latter languishing, as most of the world continued to operate with significant constraints.

Risk Premium 52

Risk Premium Market Capitalization Equity Start-ups 52

Deal Law Wire

FEBRUARY 12, 2021

Thresholds under both statutes decreased slightly, meaning more transactions may be reviewable or notifiable, respectively, than in 2020. Not publicly traded entity (acquisition of shares): Total acquisition value, plus total liabilities (excluding operating liabilities), minus cash and cash equivalents. Competition Act.

Enterprise Value 40

Enterprise Value Book Value Market Capitalization Marketability 40

Musings on Markets

JUNE 23, 2023

From 2001 to 2020, revenue growth at semiconductor businesses has dropped to single digits, as higher demand for chips in new uses has been offset by loss of pricing power, and declining chip prices. After a long stretch at the top, Intel has dropped back down the list and ranked third, in terms of revenues, in 2022.

Start-ups 104

Start-ups Marketability Market Capitalization Technology 104

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.). The notion of computing a cost of capital for a bank is fanciful and fruitless, and any attempt to compute an enterprise value for a bank is destined to end in failure.

Banking 92

Banking Price to Book Dividends Book Value 92

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.

EBITDA 52

EBITDA Equity Start-ups Net Debt 52

Musings on Markets

OCTOBER 25, 2022

With enterprise value multiples, you can scale enterprise value to FCFF, instead of using EBITDA or revenues as your scalar. It turned the profitability corner in 2020, though FCFE stayed mildly negative that year, and in 2021, the FCFE also turned positive.

Dividends 108

Dividends EBITDA Equity Start-ups 108