Musings on Markets

FEBRUARY 27, 2022

That said, about 31% of the net profits of all publicly traded firms listed globally in 2021 were generated by financial service firms; that percent is lower in the US and higher in emerging markets. To make comparisons, profits are scaled to common metrics, with revenues and book value of investment being the most common scalar.

Start-ups 99

Start-ups Equity Book Value Marketability 99

Musings on Markets

JANUARY 9, 2021

I spent the first week of 2021 in the same way that I have spent the first week of every year since 1995, collecting data on publicly traded companies and analyzing how they navigated the cross currents of the prior year, both in operating and market value terms. Macro Data I do not report much macroeconomic data for two reasons.

Risk Premium 52

Risk Premium Market Capitalization Equity Start-ups 52

Musings on Markets

JANUARY 5, 2024

In my corporate finance class, I describe all decisions that companies make as falling into one of three buckets – investing decisions, financing decision and dividend decisions. Financing Flows 5. Standard Deviation in Equity/Firm Value 2. Book Value Multiples 3. Dividend yield & payout 3.

Dividends 107

Dividends Risk Premium Equity Book Value 107

Musings on Markets

JANUARY 31, 2024

While private businesses are often described as profit maximizers, the truth is that if they should be value maximizers. The second is that the sanctions imposed after 2021 on doing business in Russia drove foreign competitors out of the market, leaving the market almost entirely to domestic companies.

Equity 83

Equity Book Value Start-ups Corporate Finance 83

Musings on Markets

JANUARY 6, 2023

Check rules of thumb : Investing and corporate finance are full of rules of thumb, many of long standing. For example, I have seen it asserted that a stock that trades at less than book value is cheap or that a stock that trades at more than twenty times EBITDA is expensive.

Risk Premium 52

Risk Premium Dividends Start-ups EBITDA 52

Musings on Markets

NOVEMBER 10, 2022

Accounting 101 I am not an accountant, and have no desire to be one, but I have used their output (accounting statements) as raw material in valuation and corporate finance. Since net income increases by the same magnitude, the company generated $42.5 billion , as reported.

Finance 97

Finance Start-ups Equity Equity Financing 97