2021 EBITDA Risk-free Rate 
Musings on Markets
JANUARY 26, 2023
My last valuation of Tesla was in November 2021, towards its market peak, and given its steep fall from grace, in conjunction with Elon Musk's Twitter experiment, it is time for a revisit. In this section, I will begin by looking at the evolution of my Tesla value from 2013 to 2021, and then present my updated valuation of the company.
Musings on Markets
JANUARY 5, 2024
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). Long term Reinvestment (Cap Ex & Acquisitons) 4.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Musings on Markets
JANUARY 31, 2024
In my last three posts, I looked at the macro (equity risk premiums, default spreads, risk free rates) and micro (company risk measures) that feed into the expected returns we demand on investments, and argued that these expected returns become hurdle rates for businesses, in the form of costs of equity and capital.
Musings on Markets
FEBRUARY 15, 2023
The first is to see how the increase in inflation in 2021 and 2021 has played out in profitability for companies, since inflation can increase profits for some firms, and lower them for others. the returns you can make on investments of equivalent risk, and that game became a lot more difficult to win in 2022.
Musings on Markets
JULY 27, 2022
On July 21, 2021, I valued Zomato just ahead of its initial public offering at about ? 169 per share in late 2021. per share, and the mood and momentum that worked in its favor for most of 2021 had turned against the company. 15,000 in March 2021 to ? 41 per share. 2000 per share, and the stock is currently trading at ?
Equidam
APRIL 22, 2025
4] , [3] , [5] Unlike mature, publicly listed companies which are easier to compare using multiples of current earnings (like EBITDA) [3] , startups must be valued based on their projected future; moats, margins and the perceived strength of their future growth trajectory. [3] 23] Risk-Free Rate: Tied to government bond yields (e.g.,
Equidam
APRIL 22, 2025
2] Startups typically lack significant historical financial data, often operate with negative profits initially, rely heavily on private equity or venture capital rather than traditional bank loans, and face a much higher risk of failure. [1] This premium rises when perceived market risk increases. [27]
Expert insights. Personalized for you.
Let's personalize your content