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

JANUARY 19, 2022

When you augment this price change with the dividends on the index during 2021, the total return on the S&P 500 for 2021 was 28.47%. The results are similar if you break stocks down based upon price to book ratios or revenue growth rates. that was earned in 2019 (pre-COVID).

Risk Premium 80

Risk Premium Risk-free Rate Start-ups Equity 80

Musings on Markets

JULY 17, 2023

I am just not good at it, and the first six months of 2023 illustrate why market timing is often the impossible dream, something that every investor aspires to be successful at, but very few succeed on a consistent basis. Markets, as is their wont, live to surprise, and the first six months of 2023 has wrong-footed the experts (again).

Marketability 95

Marketability Risk Premium Start-ups Treasury 95

Musings on Markets

JANUARY 6, 2023

In January 2023, I ended up with 47,913 publicly traded firms in my sample , with the pie chart below providing a geographic breakdown. 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. Price to Book 3.

Risk Premium 52

Risk Premium Dividends EBITDA Start-ups 52

Musings on Markets

FEBRUARY 4, 2023

You see similar movements in the price to book, where the stock has gone from trading under book value to 6.7 times book value, and the enterprise value, which was less than revenue in 2016-21 to 2.71 times revenues in the most recent two years.

Start-ups 100

Start-ups Market Capitalization Marketability Equity 100