Musings on Markets

JANUARY 21, 2023

While there are many events during 2022, some political and some economic, that one can point to as the reason for poor stock returns, it is undeniable that inflation was the driving force behind the market correction. In this section, I will begin with a deconstruction of stock returns in 2022 and the year's place in stock market history.

Equity 70

Equity Risk Premium Start-ups Dividends 70

Chris Mercer

APRIL 7, 2023

Indeed, it is embedded in the pricing information from this market, which often forms they basis of comparison in valuing a subject interest.” (P. ” The International Valuation Glossary – Business Valuation (“the Glossary”) provides definitions of liquidity and marketability and their related discounts.

Marketability 52

Marketability Fair Market Value Appraisal EBITDA 52

Chris Mercer

AUGUST 1, 2022

Were also bigger and had higher market capitalizations and better operating performance, on average. The median market value of equity (MVE) for dividend-paying stocks was $133 million, and the average MVE was $248 million. And what about the terminal value that gives rise to capital appreciation?

Dividends 52

Dividends Appraisal Marketability Start-ups 52

Musings on Markets

JANUARY 5, 2024

Since I am lucky enough to have access to databases that carry data on all publicly traded stocks, I choose all publicly traded companies, with a market price that exceeds zero, as my universe, for computing all statistics. Return on Equity 1. Equity Risk Premiums 2. Return on (invested) capital 2. Return on Equity 2.

Dividends 98

Dividends Risk Premium Equity Book Value 98

Musings on Markets

OCTOBER 6, 2023

In this post, I will look at another initial public offering, Birkenstock, that is likely to get more attention in the next few weeks, given that it is targeting to go public at a pricing of about €8 billion, for its equity, in a few weeks.

Intangible Assets 104

Intangible Assets Book Value Equity Start-ups 104

Musings on Markets

DECEMBER 10, 2023

Key Person(s): Pricing effects It is true that markets are pricing mechanisms, not instruments for reflecting value, at least in the short term, and it should come as no surprise then that the effects of a key person are captured in pricing premiums or discounts, sometime arbitrary, and sometimes based upon data.

Key Person Discount 113

Key Person Discount Start-ups Price to Book Marketability 113

Appraisal Rights

JUNE 5, 2017

Further to our prior post about Delaware’s two new appraisal decisions, SWS Group was a small, struggling bank holding company that merged on January 1, 2015 into one of its own substantial creditors, Hilltop Holdings. Stockholders of SWS received a mix of cash and Hilltop stock worth $6.92 at closing. below the merger price.

Beta 40

Beta Risk Premium Capital Structure Discounted Cash Flow 40