Valutico

APRIL 12, 2023

This model takes into account a variety of factors, such as risk-free rate, beta, and expected market returns. Cost of equity (or “discount rate”), which considers the expected rate of return given current market conditions and the risk associated with investing in the company. A beta of 1.0

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Musings on Markets

FEBRUARY 16, 2024

Its impact is not just financial, but emotional and physical, and it predates markets. Dealing with catastrophic risk It is undeniable that catastrophic risk affects the values of businesses, and their market pricing, and it is worth examining how it plays out in each domain. 4 & 5 Uninsurable Risk.

Risk Premium 74

Risk Premium Start-ups Beta Marketability 74

Brian DeChesare

SEPTEMBER 13, 2023

Distressed debt investing offers advantages over other hedge fund strategies , but the marketing often oversells the benefits. These percentages mean the market is pricing in a high likelihood of creditor losses in a restructuring or bankruptcy. “Distressed assets offer non-correlated returns, similar to global macro.”

Equity 83

Equity Banking EBITDA Start-ups 83

Benzinga

JANUARY 10, 2023

The addition of Nest Egg, which had previously been an acquisition target of GammaRey, will enable GoLogiq to further leverage GammaRey's fintech ecosystem with offerings that address the high-growth market of wealth management for Generation Z and Millennials. trillion to $3.6 For the launch, Nest Egg plans to.

Beta 40

Beta Banking Marketability Technology 40

Brian DeChesare

NOVEMBER 9, 2022

People usually start this discussion by comparing S&T exits to investment banking exit opportunities and saying that S&T exit options are “worse.”. Traditional investment banking exit opportunities such as private equity , venture capital , and corporate development are highly unlikely , with a few exceptions for certain desks.

Banking 69

Banking Equity Start-ups Marketability 69

Brian DeChesare

MAY 3, 2023

But people who aim for investment banking roles are very much into those bells and whistles, so questions about the DDM and other “exotic” methodologies began rolling in. To be fair, in some industries – like commercial banks and insurance within FIG – the DDM is a core valuation methodology.

Dividends 64

Dividends Terminal Value Enterprise Value Equity 64

Andrew Stolz

MARCH 20, 2020

A firm borrows from banks or bondholders and it has to pay the interest. The formula implies the return an investor expects from a risk-free investment plus the return from the stock in relation to market volatility. The market risk premium is calculated from a market rate of return less a risk-free rate. Conclusion.

Beta 52

Beta Capital Structure Risk-free Rate Weighted Average Cost of Capital 52

Brian DeChesare

JULY 19, 2023

So, many distressed funds that pursue control strategies are “long-only” even if they market themselves as “distressed” or “deep value.” Theoretically, an equity fund could be long-only and manage its risk by buying stocks that are negatively correlated with the market. What Makes Long-Only Hedge Funds Different?

Equity 52

Equity Beta Banking Start-ups 52

Musings on Markets

JANUARY 31, 2024

For decades, the notion of maximizing value has been central to corporate finance, though there have been disagreements about whether maximizing stock prices would get you the same outcome, since that latter requires assumptions about market efficiency. That said, global (US) companies collectively generated $5.3 trillion ($1.8

Equity 79

Equity Book Value Start-ups Corporate Finance 79

Brian DeChesare

DECEMBER 6, 2023

There are only a few dozen large funds in this category worldwide, but they’ve greatly impacted the markets and finance careers. Multi-manager hedge funds promise investors solid risk-adjusted returns with low volatility; no matter what the broader market does, you’ll make money if you invest in them. you lose 10% from your peak AUM).

Start-ups 85

Start-ups Beta Marketability Comps 85

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. With regard to beta, the court found fault with both side’s approach. at closing. below the merger price. Conclusion.

Beta 40

Beta Risk Premium Capital Structure Discounted Cash Flow 40

Musings on Markets

NOVEMBER 1, 2023

That attention has worked in the company's favor over much of its lifetime, as it has gone from a start-up to one of the largest market cap companies in the world, disrupting multiple businesses in the process.

Start-ups 114

Start-ups Marketability Market Capitalization Equity 114

Benzinga

JULY 26, 2022

July 26, 2022 (GLOBE NEWSWIRE) -- First National Corporation (the "Company" or "First National") (NASDAQ: FXNC ), the bank holding company of First Bank (the "Bank"), reported unaudited consolidated net income of $3.8 STRASBURG, Va., million, or $0.61 per basic and diluted share, for the second quarter of 2022.

Banking 40

Banking Dividends Marketability Equity 40

Value Scope

SEPTEMBER 24, 2020

That said, this lens of due diligence has changed how the market invests. A factor of investment in the market is based on sentiment and belief in performance. Uncertainty in market signals. This is important because it gives the markets a realistic assessment of those risks. Exposure to litigation. Technology.

Intangible Assets 130

Intangible Assets Alpha Beta Marketability 130

Brian DeChesare

MAY 24, 2023

Here’s how these strategies compare on the “trading vs. private equity” spectrum: The big selling point of the “middle” strategies – special situations and distressed – is that their returns are relatively uncorrelated with the overall market , and they have greater potential upside than something like merger arbitrage.

Equity 64

Equity Start-ups EBITDA Banking 64

Musings on Markets

FEBRUARY 27, 2023

Note that this framework applies for all businesses, from the smallest, privately owned businesses, where debt takes the form of bank loans and even credit card borrowing and equity is owner savings, the largest publicly traded companies, where debt can be in the form of corporate bonds and equity is shares held by public market investors.

Equity 52

Equity EBITDA Start-ups Net Debt 52

Musings on Markets

JULY 13, 2022

As I look across the many posts I have had this year on how inflation is changing market pricing and psychology, I find myself drawing on one of my favorite Bob Dylan lyrics, "the times, they are a'changin'".

Risk Premium 81

Risk Premium Risk-free Rate Start-ups Equity 81

Brian DeChesare

JULY 27, 2022

Let’s say that Target has a bond with an 8% Yield to Maturity , i.e., you earn an internal rate of return (IRR) of 8% if you buy the bond at its current market price and hold it until maturity. The Walmart bond’s YTM is still 5%, so its market price is the same. So, you long the Target bond and short the Walmart bond.

Equity 52

Equity Start-ups Private Equity Firm Beta 52

Brian DeChesare

JUNE 29, 2022

And similar to long/short equity hedge funds , they target undervalued and misunderstood companies and profit when the rest of the market catches up. Long/short equity and credit hedge funds look for mispriced securities with potential catalysts that might change their market prices. Investment Banking & Private Equity: 17%.

Private Equity Firm 52

Private Equity Firm Equity Banking Start-ups 52

FE International

MARCH 14, 2018

As the technical evolution of the industry continues to take it in a more accessible direction , and consumer demand for useful and disruptive software increases, the market is getting more lucrative for innovative, independent developers. A breakdown of the market shares enjoyed by leading e-commerce platforms. Universal Apps.

Marketability 52

Marketability Start-ups EBITDA Business Valuation 52